Workday stock price has slipped into a technical bear market, moving from a record high of $310 in 2024 to the current $155. It is hovering at its lowest level since 2024, and has become a bargain as investors dump software companies.
Workday stock has crashed amid software jitters
Workday is a top software company used by thousands of companies globally. Its software is used across key sectors like human resources, finance, legal, and planning. Some of its top clients are companies like BMO, Hewlett-Packard Enterprise, and Patagonia.
Workday stock price has tumbled primarily because of the ongoing narrative in the software industry. The general view is that tools made by companies like Anthropic and OpenAI will disrupt its business model. This explains why other companies like ServiceNow, Intuit, and Adobe have slumped.
To a large extent, this view seems to be flawed as companies will continue paying for these services. Instead, companies are using these AI tools to boost their productivity and complement the existing solutions.
Workday’s growth has become a bargain as its growth continues
The most recent results showed that the company’s growth continued in the third quarter. Its revenue rose by 12.6% to over $2.4 billion, with subscriptions being $2.24 billion.
The company’s operating income rose by 10% to over $259 million, while its net income per share rose to 94 cents. This growth continued as it added more companies like Fuji Electric, Kelly Services, and Hoshino Resorts.
Wall Street analysts believe that the company’s growth will continue in the coming years. Data compiled by Yahoo Finance shows that the average revenue estimate for the first quarter is $2.52 billion, up by 20% YoY.
The annual revenue this year is expected to come in at $9.45 billion, 24% YoY followed by $10.7 billion in the next financial year. The same is trend is expected with its earnings per share (EPS), which is expected to jump to $9.11 this year and $10.7 next year.
There are signs that the company has become a bargain. Data compiled by Seeking Alpha shows that its forward price-to-earnings ratio is 17, much lower than the sector median of 23. It is also much lower than the five-year average of 46.
Most Wall Street analysts are highly bullish on the WDAY stock. For example, Scott Berg, an analyst at Needham, boosted the target to $300, while the average target among analysts is $270, up by 70% from the current level.
Workday stock price technical analysis
The weekly timeframe chart shows that the WDAY stock has crashed in the past few years. It has moved from a high of $310 in 2024 to the current $154.
The stock has moved below the Weak, Stop & Reverse level of the Murrey Math Lines tool. It has also slipped below the important support level at $200, its lowest level in August 2024 and April 2025. This price was the lower side of the descending triangle pattern.
The stock has moved below the 50-week and 100-week moving averages, a sign that bears remain in control. At the same time, the Relative Strength Index (RSI) has moved to the oversold level at 24.
Therefore, the most likely Workday share price forecast is bullish. The most likely scenario is where it drops to the ultimate support of the Murrey Math Lines tool at $125 and then bounces back later this year. If this happens, the stock will likely end the year above the Major S&R pivot point of $250.
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