Oracle's (ORCL) Newest Nemesis Workday (WDAY) Steals Limelight
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In October of 2012, Workday (NYSE: WDAY) stock began trading on the NYSE with an IPO price of $28 per share. Since then, shares have more than doubled and now traded above $61.
Workday is a provider of cloud-based enterprise resource planning (ERP) systems in the areas of human capital and financial management. On Thursday the company's Co-CEO Aneel Bhursri said it plans to continue growth with a series of "small" acquisitions.
While some view Workday as a rival to salesforce.com (NYSE: CRM), Bhusri said Workday is not likely to compete against salesforce.com. CRM may not have a target on its back but legacy ERP vendors like Oracle (Nasdaq: ORCL) and SAP (NYSE: SAP) certainly do.
On March 20th, Oracle reported Q3 results, with a flop on both the bottom and top line. Oracle's CEO blamed the miss on lack of urgency among its sales people. Others, however, pointed to companies like Workday and Salesforce.
The reason Workday is winning business is pretty simple, according to Bhursri. It has better prices.
Worday stock is no secret among investors and valuation is rich for many on Wall Street, but few analysts are willing to step in front of the trade and slap a sell rating on the stock. On the contrary, among the analysts tracked by streetinsider.com, 5 rate Workday a buy and 11 rate it Neutral.
It remains to be seen if Workday can keep momentum rolling, but one thing is for sure. Workday has certainly turned a few heads and may find it has earned a bit of limelight. Not bad for a once small upstart. However, looking forward, comparison aren't likely to get any easier, and it remains to be seen how the stock will hold up under the weight of growing expectations.
Workday is a provider of cloud-based enterprise resource planning (ERP) systems in the areas of human capital and financial management. On Thursday the company's Co-CEO Aneel Bhursri said it plans to continue growth with a series of "small" acquisitions.
While some view Workday as a rival to salesforce.com (NYSE: CRM), Bhusri said Workday is not likely to compete against salesforce.com. CRM may not have a target on its back but legacy ERP vendors like Oracle (Nasdaq: ORCL) and SAP (NYSE: SAP) certainly do.
On March 20th, Oracle reported Q3 results, with a flop on both the bottom and top line. Oracle's CEO blamed the miss on lack of urgency among its sales people. Others, however, pointed to companies like Workday and Salesforce.
The reason Workday is winning business is pretty simple, according to Bhursri. It has better prices.
Worday stock is no secret among investors and valuation is rich for many on Wall Street, but few analysts are willing to step in front of the trade and slap a sell rating on the stock. On the contrary, among the analysts tracked by streetinsider.com, 5 rate Workday a buy and 11 rate it Neutral.
It remains to be seen if Workday can keep momentum rolling, but one thing is for sure. Workday has certainly turned a few heads and may find it has earned a bit of limelight. Not bad for a once small upstart. However, looking forward, comparison aren't likely to get any easier, and it remains to be seen how the stock will hold up under the weight of growing expectations.
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