The Software Crisis Exemplifies Classic Doublethink—Stay Aware.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy WDAY?
Source: Barron's
- Doublethink Concept: Doublethink, a key theme in George Orwell's "1984," refers to the ability to hold two contradictory beliefs simultaneously.
- Wall Street's Behavior: The article suggests that Wall Street is currently exhibiting a form of doublethink in its actions and beliefs.
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Analyst Views on WDAY
Wall Street analysts forecast WDAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WDAY is 275.19 USD with a low forecast of 235.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
31 Analyst Rating
22 Buy
9 Hold
0 Sell
Moderate Buy
Current: 162.920
Low
235.00
Averages
275.19
High
325.00
Current: 162.920
Low
235.00
Averages
275.19
High
325.00
About WDAY
Workday, Inc. is a provider of an artificial intelligence (AI) platform to help organizations manage their people, money, and agents. The Company provides over 11,000 organizations with cloud solutions powered by AI to help solve business challenges, including supporting and empowering their workforce, managing their finances and spending in an ever-changing environment, and planning for the unexpected. It offers Financial Management, Spend Management, Human Capital Management (HCM), Planning, and Analytics applications. The Company sells its solutions worldwide primarily through direct sales. It also offers professional services, both directly and through its Workday Services Partners, to help customers deploy its solutions. It offers businesses flexible solutions to help them adapt to their industry-specific needs and respond to change. It serves various industries, including professional and business services, financial services, healthcare, education, government, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Workday CEO Carl Eschenbach Steps Down, Aneel Bhusri Takes Over
- Executive Change: Workday CEO Carl Eschenbach has stepped down immediately, with co-founder Aneel Bhusri taking over; Bhusri's extensive leadership history from 2009 to 2024 indicates a significant shift in the company's direction.
- Market Pressure: Software stocks are under pressure as investors worry about AI's disruptive potential, with Workday's shares dropping 17% last year and over 20% year-to-date, reflecting diminished market confidence in the company's future.
- Job Cuts and Investment: To bolster its investment in technology, Workday cut approximately 1,750 jobs last year; despite Eschenbach's statement highlighting achievements in operational discipline and AI groundwork, the market's reaction remains negative.
- Industry Transformation: Bhusri stated that AI represents a transformation larger than SaaS, which will define the next generation of market leaders, indicating that the company will face new strategic challenges and opportunities ahead.
See More
Workday CEO Transition: Aneel Bhusri Returns to Lead
- Leadership Change: Workday announced the immediate resignation of CEO Carl Eschenbach, with co-founder Aneel Bhusri stepping back into the role, having previously served as CEO from 2009 to 2020, which may significantly influence the company's strategic direction.
- Market Pressure Intensifies: Workday's stock has dropped 17% over the past year and more than 20% year-to-date, reflecting investor concerns about the potential impact of artificial intelligence on the software sector, indicating a lack of confidence in the company's future performance.
- Job Cuts and Investment: Last year, Workday cut approximately 1,750 jobs to bolster its investment in technology, a move that may negatively affect employee morale in the short term but could enhance the company's competitiveness in AI in the long run.
- Industry Outlook: Bhusri stated that AI represents a greater transformation than SaaS, indicating a strategic focus on leveraging AI technology to shape future market leaders, which could significantly impact Workday's market positioning and competitive strategy.
See More
Workday CEO Resignation Leads to 6.58% Stock Drop
- Executive Change: Workday's CEO Carl Eschenbach has stepped down, with co-founder and current executive chair Aneel Bhusri appointed as his successor, resulting in a 6.58% drop in stock price to $152.20, reflecting market concerns over leadership changes.
- Board Restructuring: Eschenbach will leave the board but continue as a strategic advisor to the CEO, which may impact the company's governance structure and decision-making processes moving forward.
- Stable Financial Outlook: Workday expects its fiscal 2026 fourth quarter and full-year financial results to align with guidance, indicating that the company maintains financial stability during this leadership transition.
- Market Environment Challenges: The software sector undergoes a 'forest fire' every 10-15 years, and analysts suggest that the market is about to take off, prompting Workday to adjust its strategy in response to potential challenges ahead.
See More
Carl Eschenbach Steps Down as CEO; Aneel Bhusri Returns to Lead Workday
- Leadership Transition: Carl Eschenbach steps down as CEO, with Aneel Bhusri returning to the role, marking a new chapter for Workday after a period of global expansion and operational scaling, which is expected to further enhance the company's leadership in the rapidly evolving AI sector.
- Global Expansion Achievements: Under Eschenbach's leadership, Workday significantly expanded its global operations and strengthened operational discipline, laying a solid foundation for the company in the AI era, which is anticipated to provide robust support for future market competition.
- Financial Outlook Confirmation: Workday expects its fiscal 2026 fourth quarter and full-year financial results to align with previous guidance, despite adjustments to GAAP operating margins, which will bolster investor confidence in the company's stability.
- Strategic Advisor Role: Eschenbach will continue as a strategic advisor to support Bhusri's leadership, ensuring stability during the transition and further solidifying Workday's competitive advantage in the enterprise software market.
See More
Carl Eschenbach Steps Down as CEO; Aneel Bhusri Returns to Lead Workday
- Leadership Transition: Carl Eschenbach steps down as CEO, with Aneel Bhusri returning to the role, signaling Workday's shift towards a focus on the rapidly evolving AI landscape, which is expected to enhance the company's market leadership.
- Global Expansion Achievements: Under Eschenbach's leadership, Workday significantly expanded its global operations and strengthened operational discipline, laying a solid foundation for the company in the AI era and enhancing its competitiveness in the enterprise software market.
- Financial Outlook Confirmation: Workday expects its fiscal 2026 fourth quarter and full-year financial results to align with previous guidance, despite adjustments to GAAP operating margins, indicating stability in financial management.
- Future Strategic Direction: Bhusri emphasizes that AI represents a transformation larger than SaaS, which will define the next generation of market leaders, indicating that the company will remain agile and forward-looking in response to technological innovation and market demand changes.
See More
Workday Launches New Feature and Maintains Buy Rating
- Rating Maintenance and Price Target: Evercore ISI maintained a Buy rating on Workday, Inc. (NASDAQ:WDAY) on February 5, setting a price target of $300, reflecting confidence in the company's future growth despite ongoing pessimism in the software sector.
- New Feature Launch: On February 3, Workday introduced the Military Skills Mapper, a feature designed to help organizations identify and hire military veterans more effectively by translating military backgrounds into civilian-equivalent skills, enhancing employers' understanding of veterans' technical expertise.
- Rating Adjustment: Piper Sandler adjusted Workday's price target from $235 to $200 on February 2 while maintaining a Neutral rating, indicating continued pessimism around the software industry and recommending a focus on hyperscaler, consumption, and vertical sub-sectors.
- Enterprise Cloud Application Development: Workday is focused on developing enterprise cloud applications, offering human capital management, financial management, and analytics applications for educational institutions, companies, and government agencies, positioning itself for long-term growth despite competitive pressures.
See More
Workday CEO Carl Eschenbach Steps Down, Aneel Bhusri Takes Over
- Executive Change: Workday CEO Carl Eschenbach has stepped down immediately, with co-founder Aneel Bhusri taking over; Bhusri's extensive leadership history from 2009 to 2024 indicates a significant shift in the company's direction.
- Market Pressure: Software stocks are under pressure as investors worry about AI's disruptive potential, with Workday's shares dropping 17% last year and over 20% year-to-date, reflecting diminished market confidence in the company's future.
- Job Cuts and Investment: To bolster its investment in technology, Workday cut approximately 1,750 jobs last year; despite Eschenbach's statement highlighting achievements in operational discipline and AI groundwork, the market's reaction remains negative.
- Industry Transformation: Bhusri stated that AI represents a transformation larger than SaaS, which will define the next generation of market leaders, indicating that the company will face new strategic challenges and opportunities ahead.
See More
Workday CEO Transition: Aneel Bhusri Returns to Lead
- Leadership Change: Workday announced the immediate resignation of CEO Carl Eschenbach, with co-founder Aneel Bhusri stepping back into the role, having previously served as CEO from 2009 to 2020, which may significantly influence the company's strategic direction.
- Market Pressure Intensifies: Workday's stock has dropped 17% over the past year and more than 20% year-to-date, reflecting investor concerns about the potential impact of artificial intelligence on the software sector, indicating a lack of confidence in the company's future performance.
- Job Cuts and Investment: Last year, Workday cut approximately 1,750 jobs to bolster its investment in technology, a move that may negatively affect employee morale in the short term but could enhance the company's competitiveness in AI in the long run.
- Industry Outlook: Bhusri stated that AI represents a greater transformation than SaaS, indicating a strategic focus on leveraging AI technology to shape future market leaders, which could significantly impact Workday's market positioning and competitive strategy.
See More
Workday CEO Resignation Leads to 6.58% Stock Drop
- Executive Change: Workday's CEO Carl Eschenbach has stepped down, with co-founder and current executive chair Aneel Bhusri appointed as his successor, resulting in a 6.58% drop in stock price to $152.20, reflecting market concerns over leadership changes.
- Board Restructuring: Eschenbach will leave the board but continue as a strategic advisor to the CEO, which may impact the company's governance structure and decision-making processes moving forward.
- Stable Financial Outlook: Workday expects its fiscal 2026 fourth quarter and full-year financial results to align with guidance, indicating that the company maintains financial stability during this leadership transition.
- Market Environment Challenges: The software sector undergoes a 'forest fire' every 10-15 years, and analysts suggest that the market is about to take off, prompting Workday to adjust its strategy in response to potential challenges ahead.
See More
Carl Eschenbach Steps Down as CEO; Aneel Bhusri Returns to Lead Workday
- Leadership Transition: Carl Eschenbach steps down as CEO, with Aneel Bhusri returning to the role, marking a new chapter for Workday after a period of global expansion and operational scaling, which is expected to further enhance the company's leadership in the rapidly evolving AI sector.
- Global Expansion Achievements: Under Eschenbach's leadership, Workday significantly expanded its global operations and strengthened operational discipline, laying a solid foundation for the company in the AI era, which is anticipated to provide robust support for future market competition.
- Financial Outlook Confirmation: Workday expects its fiscal 2026 fourth quarter and full-year financial results to align with previous guidance, despite adjustments to GAAP operating margins, which will bolster investor confidence in the company's stability.
- Strategic Advisor Role: Eschenbach will continue as a strategic advisor to support Bhusri's leadership, ensuring stability during the transition and further solidifying Workday's competitive advantage in the enterprise software market.
See More
Carl Eschenbach Steps Down as CEO; Aneel Bhusri Returns to Lead Workday
- Leadership Transition: Carl Eschenbach steps down as CEO, with Aneel Bhusri returning to the role, signaling Workday's shift towards a focus on the rapidly evolving AI landscape, which is expected to enhance the company's market leadership.
- Global Expansion Achievements: Under Eschenbach's leadership, Workday significantly expanded its global operations and strengthened operational discipline, laying a solid foundation for the company in the AI era and enhancing its competitiveness in the enterprise software market.
- Financial Outlook Confirmation: Workday expects its fiscal 2026 fourth quarter and full-year financial results to align with previous guidance, despite adjustments to GAAP operating margins, indicating stability in financial management.
- Future Strategic Direction: Bhusri emphasizes that AI represents a transformation larger than SaaS, which will define the next generation of market leaders, indicating that the company will remain agile and forward-looking in response to technological innovation and market demand changes.
See More
Workday Launches New Feature and Maintains Buy Rating
- Rating Maintenance and Price Target: Evercore ISI maintained a Buy rating on Workday, Inc. (NASDAQ:WDAY) on February 5, setting a price target of $300, reflecting confidence in the company's future growth despite ongoing pessimism in the software sector.
- New Feature Launch: On February 3, Workday introduced the Military Skills Mapper, a feature designed to help organizations identify and hire military veterans more effectively by translating military backgrounds into civilian-equivalent skills, enhancing employers' understanding of veterans' technical expertise.
- Rating Adjustment: Piper Sandler adjusted Workday's price target from $235 to $200 on February 2 while maintaining a Neutral rating, indicating continued pessimism around the software industry and recommending a focus on hyperscaler, consumption, and vertical sub-sectors.
- Enterprise Cloud Application Development: Workday is focused on developing enterprise cloud applications, offering human capital management, financial management, and analytics applications for educational institutions, companies, and government agencies, positioning itself for long-term growth despite competitive pressures.
See More
