Both forms are correct. “Αγαπώ” belongs to a later evolution stage of the language, therefore it is more commonly used in modern Greek.
Generally in the Greek language, for phonetic reasons, sequences of many vowels are not acceptable. The tendency is to combine them. The combining of vowels is called “συναίρεση” (syneresis) and it is a very common phenomenon even from ancient Greece.
"Σ' αγαπώ" means "I love you" and here is how it sounds : Σ' αγαπώ
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Vasiliki Baskou, Instructor/Director, https://learn-greek-online.com.