Jim Cramer’s Game Plan: 17 Stocks in Focus

9. Workday, Inc. (NASDAQ:WDAY)

Number of Hedge Fund Holders: 89

Cramer is of the opinion that Workday, Inc. (NASDAQ:WDAY) will witness a downside if it reports softer sales.

“After the close, we hear from Workday. That’s an enterprise software company that got downgraded this week because of the possibility of softer sales. The enterprise software group is really at the heart of this market’s weakness. If the sales are soft, I expect much more downside.”

Workday (NASDAQ:WDAY) provides cloud-based enterprise software that assists organizations in managing financial, human resources, spending, planning, and supply chain functions, along with tools for analytics, reporting, and custom application development.

Polen Capital stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q3 2024 investor letter:

“We added to several existing positions in the quarter including Adobe, Workday, Inc. (NASDAQ:WDAY), Shopify, MSCI, and Paycom Software. Workday is still growing revenue at a mid-to-high-teens rate, but in recent years, slower macroeconomic growth has made closing deals more challenging. Amidst a pullback, we increased our position as we found the valuation attractive for a well-positioned, recurring revenue business with still strong growth potential. The company also recently stated publicly that it will be focused on expanding profit margins meaningfully over the next five years—something we have expected and are pleased to see.”