On July 29, Workday rose 5.01% in regular trading, trading at $167.51 per share, with turnover of $301 million. The gain came as the SaaS sector extended its prior-session strength, with funds rotating out of chip stocks into software names.
Morgan Stanley recently published a research note stating that the market's pessimistic expectations for the software industry have been sufficiently priced in, maintaining a positive rating on the software sector. The report highlighted several companies as key AI-era software picks. Within the sector, Adobe rose 5.73% and Salesforce gained 3.52%, reflecting broad-based recovery in SaaS names.
Software stocks had previously undergone severe valuation compression, with some leading names declining over 35% year-to-date at their lows. The current recovery in market sentiment, combined with sector rotation effects, has driven the collective rebound in SaaS concepts. Notably, Morgan Stanley had downgraded Workday to underweight on July 21 with a $145 price target, citing slowing core growth and early-stage AI monetization, yet the stock has since rallied well above that level amid the broader sector move.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
