Good morning. M&A made a comeback this year, but growth is lagging in the middle market.PwC’s U.S. Deals 2026 Outlook, released this morning, credits the AI boom and a revitalized private equity (PE) activity for the market achieving 10,333 deals worth $1.6 trillion through Nov. 30, 2025. Total deal value rose about 45% from last year and was the second-highest ever recorded, even amid major shifts in economic policy, such as tariffs.Courtesy of PwCBig bets on AI helped drive activity among tech companies—e ...

In the current market session, Workday Inc. (NASDAQ:WDAY) price is at $224.49, after a 0.20% spike. However, over the past month, the stock fell by 2.74%, and in the past year, by 19.35%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session. Comparing Workday P/E Against Its PeersThe P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current per ...

With significant hedge fund interest and upside potential, Workday, Inc. (NASDAQ:WDAY) secures a spot on our list of the 15 best AI stocks to watch in December 2025. DA Davidson Remains Cautious on Workday (WDAY) Amid Market Saturation and Intensifying Competition On December 2, 2025, Workday, Inc. (NASDAQ:WDAY) saw Rosenblatt Securities' Robert Simmons reiterate his “Hold” rating with a $235 price target. Reflecting mixed signals in the company’s growth trajectory, he pointed toward its Core HCM segment ...

Core Insights - Workday is positioned to leverage the shift from infrastructure-focused models to AI-driven business applications, indicating a transformative phase in the enterprise application landscape [2] - The company aims to become a leading player in the industry, suggesting a potential rise of new market leaders as traditional giants may falter [2] Company Overview - Gerrit Kazmaier, the President of Product and Technology at Workday, has a background with 11 years at SAP and experience at Google before joining Workday 9 months ago [2] - Kazmaier emphasizes the importance of understanding both enterprise applications and planet-scale AI systems, highlighting the company's strategic focus on value generation through technology [2]

Workday FY Conference Summary Company Overview - **Company**: Workday (NasdaqGS: WDAY) - **Industry**: Enterprise Software, specifically focusing on Human Resources (HR) and Finance solutions Key Points and Arguments Market Potential - Workday operates in a Total Addressable Market (TAM) of approximately **$200 billion** with only **4-5%** market penetration, indicating significant growth opportunities [4][6] - The company aims to expand its portfolio, particularly in frontline work, which encompasses around **3 billion workers globally** [6][12] Growth Strategies 1. **Portfolio Expansion**: - Workday is broadening its service offerings in finance, including new modules for revenue management and cost management [7][8] 2. **Geographic Expansion**: - Focus on increasing presence in Europe with localized offerings and new data centers, as well as entering the Indian market [10][12] 3. **Targeting Mid-Market**: - Workday is simplifying its services to better cater to mid-market companies (1,000 to 3,000 employees) with new packages like Workday Go and Workday Accelerated [12][11] Technology and Innovation - Workday is committed to leveraging AI to transform user experience and automate backend processes, with **1.2 billion AI actions** already executed in the core platform [20][24] - The company has structured its AI strategy around three pillars: enhancing user experience, automating backend processes, and creating an open platform for integration [18][22] Data and AI - Workday emphasizes the importance of data, context, and process for AI value generation, creating a high barrier to entry for competitors [28][30] - The company has a unique advantage due to its comprehensive data set across HR and finance functions, which is essential for effective AI implementation [28][24] Monetization Strategy - Introduction of **Flex Credits** as a new monetization model for AI features, allowing customers to pay based on usage rather than a fixed seat-based model [39][40] - This model aims to balance customer value with Workday's revenue generation, allowing for flexibility in AI feature consumption [41][46] Acquisitions - Workday has made strategic acquisitions to enhance its AI capabilities, including the acquisition of **Sana** for AI-driven user experience and **Pipedream** for connectivity [50][53] - The focus is on integrating these acquisitions to create a comprehensive ecosystem that enhances the Workday platform [54][55] Financial Discipline - Workday maintains a balance between innovation and margin efficiency, leveraging operational leverage to invest in both organic and inorganic growth [58][60] - The company is confident in its ability to continue expanding investments in AI while also improving margins [60][61] Additional Insights - The discussion highlighted the misconception that AI can operate effectively without a strong data and process foundation, emphasizing the need for accuracy in enterprise applications [32][36] - Workday's approach to AI is not just about better dashboards but about fundamentally transforming business processes [36][37] This summary encapsulates the key insights from Workday's FY conference, focusing on its market potential, growth strategies, technological innovations, and financial discipline.

THE WOODLANDS, Texas--(BUSINESS WIRE)--Strada announces a strategic partnership with Workday as a Workday Wellness partner. ...

Core Insights - Cloud software stocks have shifted from being overpriced momentum trades during the pandemic to being viewed as undervalued stocks in the current market environment [1] Group 1: Market Transition - The transition of cloud software stocks reflects a significant change in market sentiment, moving from high demand to a perception of being "bargain-basement" stocks [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in both Wall Street and Silicon Valley, providing him with insights into current industry trends [1]

In this piece, we will discuss the 15 Best AI Stocks to Watch in December 2025.Amid rising valuations, increased capital spending, and cautionary signals from global investors and policymakers, the AI sector continues to draw attention. The intense competition that is shaping the sector was highlighted by Bill Gates, who spoke at Abu Dhabi Finance Week on November 8, 2025. He warned that not all companies with high valuations will end up as winners, even though he regards AI as “a deeply profound technology ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the software industry, particularly enterprise/business software companies that generate significant revenues. Notable companies include Microsoft (MSFT), Oracle (ORCL), Salesforce (CRM), Adobe (ADBE), Intuit (INTU), ServiceNow (NOW), and Workday (WDAY) [1][5][12]. Core Insights and Arguments 1. **Challenges in Scaling Software Companies** - Creating a profitable software franchise is difficult, with only a few companies achieving over $10 billion in revenue. Most companies in the $100-500 million range struggle to scale [1]. 2. **Importance of Selective Optimism** - Investors should be selectively optimistic about a few companies' potential to scale profitably, especially in unproven categories. Successful companies often start with a solution that addresses a significant market need, which then expands the Total Addressable Market (TAM) [1]. 3. **Sustained Growth in Established Companies** - Companies like CRM, INTU, and ADBE have consistently outperformed GDP growth, demonstrating the ability to sustain above-average growth rates over time [5][7]. 4. **R&D Investment and Product Development** - Successful software companies maintain a balance between high R&D investment and profitability. New products should be introduced at a pace that customers can manage, avoiding over-reliance on a single hit product [9]. 5. **M&A Strategy and Organic Growth** - Transitioning from organic growth to M&A can unsettle investors, as seen with Salesforce. Successful acquisitions should enhance organic growth without negatively impacting operating margins [12]. 6. **Power of Incumbency** - Established companies become harder to dislodge during tech transitions. Historical examples show that incumbents like Intuit and Adobe have successfully navigated disruptive periods [13]. 7. **Balancing Growth and Free Cash Flow (FCF) Margins** - Companies that maintain a balance between growth and profitability tend to perform well across different market cycles. A focus on profitability can hinder growth if not managed carefully [14][16]. 8. **Opportunities During Tech Transitions** - Transitions between tech cycles, such as from cloud to AI, can create investment opportunities despite initial market uncertainty. Companies that adapt quickly can benefit significantly [17]. 9. **Value Creation through TAM and Unit Economics** - A combination of a large TAM and attractive unit economics is rare but essential for long-term value creation. Companies must manage their sales and marketing expenses effectively to maintain healthy unit economics [19][21]. 10. **Challenges of Disruption** - For disruption to be sustainable, new entrants must offer significantly better pricing and functionality than incumbents. The balance between gross margins and revenue scale is crucial [31]. 11. **Residual Value in AI** - The AI landscape is complex, with various players (foundation models, hyperscalers, and application companies) vying for value. Companies like Microsoft and Alphabet have unique advantages that may allow them to capture significant residual value [34]. Additional Important Insights - **Emerging Companies with Potential** - Smaller companies with potential for significant growth include Snowflake (SNOW), Datadog (DDOG), MongoDB (MDB), and others [1]. - **Market Dynamics and Historical Context** - Historical market cycles provide context for current dynamics, illustrating how companies can emerge stronger after periods of uncertainty [17]. - **Framework for Investing in Software** - A structured approach to investing in software includes evaluating TAM, unit economics, and the balance between growth and profitability [24]. This summary encapsulates the key points discussed in the conference call, providing insights into the software industry's current landscape and future opportunities.

Key Takeaways MRVL, TEAM, ADBE, WDAY and SNAP have lagged in 2025 despite AI-driven market strength. Each pick shows rising earnings estimates and notable growth catalysts across AI offerings.All five stocks carry double-digit price upside potential in the short term.The artificial intelligence (AI)-driven astonishing bull run of 2023 and 2024 has continued in 2025 too. With less than four weeks to close this year, the AI-centric stocks are set to witness another fabulous year buoyed by the enormous growth ...