WDAY - Workday Inc.

Holds sensitive payroll and employee data that AI needs to act; AI already drives over 25% of new deals. Still down ~21% from highs, making it a potential opportunity.

Argued that Workday (and SAP) have a durable 'special mousetrap' — decades of institutional knowledge, 9-18 month implementations, and millions of dollars of switching costs mean you can't 'vibe code' them. They'll survive long-term even if frontier labs compete.

Brad cites Workday's move on M&A rumors as evidence that software sentiment has shifted from indiscriminate selling to selective rewards.

Host regrets not buying Workday before its 70% rally; no current position but is monitoring it as a potential SaaS investment.

Up 42% from lows; cited in the software rebound that mirrors the chip crash.

Trump's accounts bought Workday. Cash flow generating machine, AI solutions approaching $500M ARR, beat guidance.

Steven calls Workday deeply undervalued at ~11x forward earnings, down 60% from its highs. He highlights sticky enterprise contracts, double-digit revenue and EPS growth, and argues it cannot be replaced by AI-generated code due to compliance, legal, and auditing requirements. He personally led a large-scale implementation and emphasizes switching costs are enormous (6-18 months).

Workday is hated and down to $130, back to 2020 levels. Forward P/E dropped from 25 to 12, making it cheap. Recent earnings were weak but the stock recovered from -13% to finish positive, suggesting sellers may be exhausted. This could be the bottom, but confirmation is needed from the next earnings report.

Stock is down 40% YTD, trading at a forward PE of 10–12, with multiple layers of technical support (prior low pivot, gap fill). Gareth is actively buying across multiple accounts, comparing the setup to PayPal's recent 22% bounce from similar valuations. Believes institutional money will recognize the value.

Host criticizes the market's reaction to Workday missing guidance by only 1%, noting the stock was down 8.7% and has been cut in half over the past year. He views this as an overreaction and indicative of the harsh environment for traditional software names.