05. October 2021 | 10:25 CET
SAP, Kleos Space, Facebook: Invest in data treasures
Data is the raw material of the 21st century. Whether it is real estate usage data, people's habits, or even their sleep - if you can analyze data on a large scale, you can tailor products and services precisely to your customers. That makes for greater business success. So it is no wonder that companies that collect data are willing to pay for it. We present three stocks that are well-positioned around data and the digital future.
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ISIN: SAP SE O.N. | DE0007164600 , KLEOS SPACE CDI/1/1 | AU0000015588 , FACEBOOK INC.A DL-_000006 | US30303M1027
SAP: The digital stock for conservatives
When German private investors think of digitization, the name SAP quickly comes up. And it is no wonder. The Company from Walldorf near Heidelberg has made it into many companies with its products. Whether personnel management, warehousing or accounting, SAP's modular software is suitable for almost every Company. Especially in the area of the cloud, things have been going well lately. Customers such as BioNTech and Google now rely on SAP. Coupled with software support revenue, the share of cloud solutions in total revenue rose to 78%.
SAP's recent acquisitions also show that the data cloud is the future. Here, too, it is largely about the interpretation of data. SAP is also way out in front when it comes to artificial intelligence and is trying to help customers with problems even faster with the help of technology. In the end, this saves SAP money and keeps customers happy. Although revenues are expected to fall slightly due to exchange rate fluctuations and other effects, Walldorf is satisfied and treats shareholders to a slightly higher dividend. The share is still in a slight upward trend but should soon turn upward again to keep the value in positive waters.
Kleos Space: Data from space as an ingenious business idea
An exciting investment when it comes to data could also be Kleos Space. The Company has offices in Australia, London and Luxembourg and has successfully launched satellites into space for some time. The mission: to gain data! The satellites orbit the Earth in different orbits, covering critical regions, such as the Mediterranean Sea. The satellites detect radio activity and relay the data to Earth. There, software interprets the data and relays the information to Kleos Space's customers. These include shipping companies, security agencies and border guards, or even the military.
The fact that Kleos Space's business can be lucrative is shown by figures that assume up to USD 18 billion in damage annually due to piracy. A subscription to Kleos Space pays off in comparison to the risk posed by modern buccaneers, who often blur the line between smuggling and terrorism. Kleos Space has repeatedly launched satellites into space in recent quarters, benefiting from falling costs in launching rockets and satellites. The Company recently received fresh capital from investors to expand its offerings and hire new personnel, especially on the ground. Kleos Space believes it already has 160 potential customers and is already working with some of them. Those looking to break new ground in data investments can take a closer look at the share, which has recently consolidated and is poised to take off operationally thanks to the capital injection. The International Investment Forum, where Kleos Space will be presenting online on October 14, offers a good opportunity.
Facebook: Tech giant goes from strength to strength
A classic around data is Facebook. Whether it is an innocent 'Like' under a recipe or a lively discussion about the next vacation destination on WhatsApp, Facebook knows how to turn data into profit. In the first half of the year alone, sales climbed by more than 50% - an impressive figure for such a large company. Profits also doubled. Meanwhile, the action at Facebook is no longer on the platform of the same name, which today almost has the image of a network for the elderly. Instead, it can be found on Instagram, where the rich and beautiful cavort and flaunt their lives. Since this generation is also more consumerist, this is also where the more valuable data accumulates.
Facebook is doing everything it can to maintain and even expand its market position by acquiring other smaller technology companies. The commitment does not (yet) extend into outer space, but the Facebook team never misses an opportunity to conquer new markets. Most recently, it invested in chatbots that can independently answer customer inquiries. Facebook is already expensive but also promising. However, the share is no longer making big leaps.
The investment stories of all three companies show that good money can be made with data. The examples also show that there are also dividend stocks among innovative companies. However, really big growth is usually promised by the smaller stocks. And here is where Kleos Space comes into play. The focus on space offers unique selling points, and the attempt to automatically evaluate and use data about activities on Earth is as simple as it is ingenious.