Why Workday Stock Popped Today

What happened

Shares of Workday (NASDAQ: WDAY) have popped today, up by 9% as of 12:20 p.m. EDT, after a Wall Street analyst released a bullish research note. Enterprise software stocks are also broadly rallying following a blockbuster earnings release from

So what

Jefferies boosted its price target on Workday from $180 to $195, which was just slightly above yesterday's close and below current prices. "We remain fundamental fans of WDAY's broad product portfolio and believe that spend will inevitably come back as we recover," analyst Brent Thill wrote in a research note to investors. However, the ongoing macroeconomic uncertainty related to the COVID-19 pandemic could impact broader IT spending and lead to delays in inking deals in the short term.

Workday logo on a wall in the lobby of headquarters

Image source: Workday.

Salesforce, which is about to join the Dow Jones Industrial Average next week, reported blowout results yesterday evening, spurring a rally among tech stocks today, particularly those in the same sector of selling critical software to enterprises. That includes Workday, which offers a cloud-based human resources (HR) platform.

Now what

Workday is set to release fiscal second-quarter results tomorrow after the market close. Analysts are expecting the company to report $1.04 billion in sales and earnings per share of $0.66. That sales forecast is mostly in line with Workday's own guidance, which calls for subscription revenue of $913 million to $915 million and professional services revenue of $128 million. CFO Robynne Sisco previously reassured investors that it had "measures in place that help reduce near-term volatility from employment changes."

10 stocks we like better than Workday
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Workday wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of August 1, 2020


Evan Niu, CFA owns shares of The Motley Fool owns shares of and recommends Jefferies Financial Group Inc.,, and Workday. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More