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Oct. 26, 2020, 8:21 a.m. EDT

Software stocks take a hit after SAP's profit and sales warning

Shares of business software companies fell Monday, after Germany-based software giant SAP SE (NYS:SAP) (ETR:XE:SAP) issued a profit and sales warning as customers have pushed back investments as a result of the COVID-19 pandemic. Shares of Oracle Corp. (NYS:ORCL) sank 2.9% in premarket trading, Salesforce.com Inc. (NYS:CRM) dropped 1.6% and Microsoft Corp. (NAS:MSFT) slid 1.1%. SAP's U.S.-listed shares plunged 21% premarket, putting them on track to open at a 5-month low. The selloff in software stocks comes as futures (CBT:YM00) for the Dow Jones Industrial Average (DOW:DJIA) slumped 290 points, or 1.0%.

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