Workday (WDAY) Fell on Reduced Guidance

Janus Henderson Investors, an investment management company, released its “Janus Henderson Contrarian Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -1.92% in the second quarter, compared to the S&P 500® Index’s 4.28% return.  Along with an accommodative monetary policy, the profits forecast for companies other than the mega-cap tech giants is improving and may act as a catalyst to expand market returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Janus Henderson Contrarian Fund highlighted stocks like Workday, Inc. (NASDAQ:WDAY), in the second quarter 2024 investor letter. Workday, Inc. (NASDAQ:WDAY) is a company that offers enterprise cloud applications. The one-month return of Workday, Inc. (NASDAQ:WDAY) was -7.42%, and its shares gained 6.89% of their value over the last 52 weeks. On September 23, 2024, Workday, Inc. (NASDAQ:WDAY) stock closed at $245.03 per share with a market capitalization of $64.933 billion.

Janus Henderson Contrarian Fund stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q2 2024 investor letter:

“Workday, Inc. (NASDAQ:WDAY), another detractor, develops and sells subscription-based enterprise cloud applications for finance and human resources. The stock declined after the company reduced full-year guidance for subscription revenue growth. The company closed fewer deals than expected in the first quarter, while its revenues per deal declined as corporate customers reduced head count. On a positive note, Workday reported better-than-anticipated margins in the first quarter and announced plans to launch an AI-powered marketplace. We continue to monitor the challenging software spending environment as companies shift their IT budgets toward AI rather than software.”

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Workday, Inc. (NASDAQ:WDAY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the second quarter which was 83 in the previous quarter. While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Workday, Inc. (NASDAQ:WDAY) and shared Parnassus Growth Equity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.