Workday ( (WDAY) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
Workday’s recent stock surge can be attributed to its announcement of a major restructuring plan, which involves cutting 8.5% of its workforce, or about 1,750 positions. This strategic move is aimed at focusing investments in artificial intelligence and achieving sustainable growth despite industry challenges like inflation. The restructuring is expected to enhance profitability with a margin improvement of 3-5 points. Analysts, including Jefferies and William Blair, have maintained a positive outlook, underscoring the plan’s alignment with growth opportunities and margin improvement. Although the restructuring will incur short-term costs, Workday anticipates its Q4 and fiscal 2025 performance to meet or exceed previous expectations, excluding these charges. Investors have responded positively, driving up the stock price.
More about Workday
YTD Price Performance: 3.13%
Average Trading Volume: 3,455,316
Technical Sentiment Consensus Rating: Strong Sell
Current Market Cap: $69.09B
For further insights into WDAY stock on TipRanks’ Stock Analysis page.
See more of today’s top stock gainers and losers.
Questions or Comments about the article? Write to editor@tipranks.com