Is the Artificial Intelligence Boost Fading for This Top Tech Stock?
When artificial intelligence (AI) stocks were all the rage earlier this year, next-generation human resources solutions developer Workday's (NASDAQ: WDAY) stock enjoyed a bit of a spring rally. In mid-May, however, the market's reaction to the company's fiscal 2026 first-quarter results erased much of that gain. The problem with being involved in a hot technology is that investors tend to expect outsized results in order to justify a swollen stock price. Many felt Workday didn't deliver. Was the company something of an unfair beneficiary of the AI craze, or is it now an oversold (and underdog) play on that technology?If Workday weren't being tagged as an AI stock, it's likely that investors would have found its latest quarterly performance impressive. The company -- hardly a young enterprise at this point -- grew its revenue by nearly 13% year over year to $2.24 billion.Continue reading
When artificial intelligence (AI) stocks were all the rage earlier this year, next-generation human resources solutions developer Workday's (NASDAQ: WDAY) stock enjoyed a bit of a spring rally. In mid-May, however, the market's reaction to the company's fiscal 2026 first-quarter results erased much of that gain.
The problem with being involved in a hot technology is that investors tend to expect outsized results in order to justify a swollen stock price. Many felt Workday didn't deliver. Was the company something of an unfair beneficiary of the AI craze, or is it now an oversold (and underdog) play on that technology?
If Workday weren't being tagged as an AI stock, it's likely that investors would have found its latest quarterly performance impressive. The company -- hardly a young enterprise at this point -- grew its revenue by nearly 13% year over year to $2.24 billion.
