The Weekly Buzzing Stocks by Billy KawasakiWorkdayWDAYTOP PICKMay 25, 2023
Workday, Inc., is an American on-demand financial management and human capital management software vendor. Workday was founded by David Duffield, founder and former CEO of ERP company PeopleSoft, and former PeopleSoft chief strategist Aneel Bhusri following Oracle's hostile takeover of PeopleSoft in 2005.
The weakest industry is anything connected to cloud computing. It's been taking market share, but it could tough for them to top their last great quarter. They report this week.
They reported a few weeks ago. Enterprise spending is not slowing. Their HR management software is based in the cloud and will continues revenue growth in coming years.
Sold Salesforce to buy Workday. She has liked CRM for many years. But Workday's work in HR and enterprise resource management. In the hybrid work environment, it could be important for employees to have a cloud platform to log into for recruiting and resource management. Workday has an excellent outlook for coming years.
It reports Monday. It's too pricey on a PE basis and it could get crushed like Zscaler today, which got crushed despite great but not super-great earnings.
Because of the Fed, stocks selling above 50x earnings are struggling, though this is a good company. The market is not favourable to such companies now.
It's now around $272, but you can probably get it a bit cheaper. Try closer to $250. Massive company. Accounting and financial processes, human resources. 12-month price target of $347.
Cloud stocks have fallen out of fashion as investors rotate into reopening names, but suppose some cloud plays could be reopen stocks, too? Workday is one. It reported a good quarter today: subscription growth came in higher than expected, revenue growth accelerate and they raised full-year guidance. Management will expand their workforce by 20% this year.
Workday, Inc., is an American on-demand financial management and human capital management software vendor. Workday was founded by David Duffield, founder and former CEO of ERP company PeopleSoft, and former PeopleSoft chief strategist Aneel Bhusri following Oracle's hostile takeover of PeopleSoft in 2005.