German business software maker SAP AG said it has delayed its profitability guidance by two years amid additional investments in its fast-growing cloud business. Shares of SAP plunged nearly 3.0% to as low as 58.31 euros earlier this morning, after Walldorf, Germany -based company said operating profit unadjusted for some items will likely reach 35% of sales by 2017 rather than in 2015 as previously expected, all in the sake of additional investments needed for the to keep up with the booming demand for web-based software products. "SAP aims to increase total revenue to at least 22 billion euros and total revenue from its cloud business to 3.0 - 3.5 billion euros by 2017," the company said, expecting higher revenues in the future amid fast-growing market along with growth in the support revenue. SAP has spent out more than 5 billion euros in the acquisition of Ariba and Hybris. Generally, Sap`s move can be viewed as a response to rival vendors as IBM and Oracle , which have also been seeking to build out products families meant to help companies build closer relations with customers amid the rise of social media and mobile devices. As of 04:35 EST , SAP rebounded the day`s open at 60.05 a share, after falling as low as 58.31 earlier in the morning.
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