Italian merchant bank Mediobanca reported a 6% fall in half-year net profit to 623 million euros ($741.87 million) on Monday. ...

Core Viewpoint - Workday Inc announced a leadership change with co-founder Aneel Bhusri returning as CEO, leading to a more than 6% drop in shares, raising concerns among analysts regarding the timing and implications of this decision [2][3][4]. Group 1: Leadership Change - Aneel Bhusri will replace Carl Eschenbach as CEO, who has served in this role for the past three years and will remain as a strategic advisor [2]. - The leadership change comes shortly after the end of the fiscal Q4, which has raised questions about the timing [3][4]. Group 2: Analyst Concerns - Analysts at Jefferies expressed skepticism about the leadership transition, suggesting that it raises questions about the company's direction, especially since Bhusri previously handed over the CEO role to focus on product and AI [4]. - There are concerns that this move may indicate potential further management changes and doubts about Workday's ability to meet medium-term targets, particularly in light of slowed growth and potential margin pressures [4]. - Analysts are awaiting more clarity on the situation during Workday's earnings release scheduled for February 24 [5].

Investor sentiment toward software stocks is low, and now Workday is replacing a CEO who was known for having good sales relationships. ...

Workday Stock Falls Amid CEO Change. Cofounder Bhusri Returns As CEO. | Investor's Business DailyBREAKING: [Futures Rise With Robinhood, Astera, Cloudflare Big Movers]Investors.com will undergo scheduled maintenance from 10:00 PM ET to 2:00 AM ET and some features may be unavailable. We apologize for any inconvenience.---Workday (WDAY) stock fell after the software maker announced that co- founder and current executive chairman Aneel Bhusri will return as chief executive officer. Carl Eschenbach will step d ...

Workday on Monday announced that CEO Carl Eschenbach is stepping down from his role and will be replaced by the company's co-founder, Aneel Bhusri, effective immediately.Bhusri has previously held a range of leadership roles at the software maker, serving as co-CEO from 2009 to 2014, CEO from 2014 to 2020, co-CEO from 2020 to 2024 and executive chair from 2024 to 2026. Eschenbach was named co-CEO of Workday alongside Bhusri in 2022, and took on the top job solo in 2024. Software stocks, including Workday, h ...

Group 1 - The software stock downturn of 2026 may be indicative of a larger trend, similar to the impact of the internet on the newspaper industry in the early 2000s [1][2] - Historical examples show that share price stability in industries facing disruption requires stable earnings outlooks, as seen with newspapers which experienced a 95% decline in share prices from 2002 to 2009 [2] - The decline in newspaper stocks ended when earnings estimates bottomed, and the uncertainty surrounding AI's impact on software companies suggests that near-term earnings will be critical indicators of business resilience [3] Group 2 - Major software companies like Salesforce, Workday, and SAP are perceived to have their terminal values threatened by advancements in AI [4] - The recent debut of AI developer Anthropic and its automation capabilities has contributed to a significant decline in shares of various software companies, with no clear positive catalysts emerging to attract investors [8] - Software stocks are underperforming the Nasdaq Composite by the largest margin this century, with notable declines including 27% for Oracle and Salesforce, and a 41% drop for Figma [9] Group 3 - The software sector typically outperforms the S&P once it finds a bottom, but the extent of the current downturn remains uncertain, with no immediate solutions to shift investor sentiment [10]

Like many software companies, shares of Workday ( WDAY ) have been pummeled - the stock has declined 25% year-to-date (and it is only February!), is down 41% over the past year, and is down 48% from its all-time high in early 2024. IAnalyst’s Disclosure: I/we have a beneficial long position in the shares of WDAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). ...

Core Viewpoint - Workday's stock has experienced significant declines, with a 25% drop year-to-date, a 41% decrease over the past year, and a 48% fall from its all-time high in early 2024 [1] Group 1 - Workday's shares have been negatively impacted like many software companies [1] - The stock is currently down 25% year-to-date and 41% over the past year [1] - The decline from its all-time high in early 2024 is 48% [1]

Leadership Transition - Workday co-founder Aneel Bhusri is returning as CEO, succeeding Carl Eschenbach, who is stepping down after leading the company through a period of global growth and operational discipline [1][2] - Eschenbach will continue to support the company as a strategic advisor to the CEO [1][2] - The leadership change is effective immediately as the company begins its fiscal year 2027 [2] Company Outlook - Workday expects its fiscal 2026 fourth quarter and full-year financial results to align with previous guidance, with the exception of its GAAP operating margin [3][4] - The company is scheduled to report its fiscal 2026 fourth quarter and full-year financial results on February 24, 2026 [4] Company Profile - Workday is an enterprise AI platform that integrates HR and finance, serving over 11,000 organizations globally, including more than 65% of the Fortune 500 [5]

Core Viewpoint - The article discusses the recent sell-off in global software stocks, termed "SaaSpocalypse," triggered by the launch of Anthropic's Claude Cowork, which poses a significant challenge to traditional SaaS business models by offering high-level results at lower costs [5][10]. Group 1: Market Reaction - On February 4, major software companies experienced significant stock declines, with Thomson Reuters dropping 15.8%, LegalZoom nearly 20%, and Salesforce and Workday also seeing notable decreases [5]. - The S&P 500 Software and Services Index fell nearly 13% over five trading days, marking a 26% drop from its October peak [5]. - The sell-off is compared to a previous market panic caused by DeepSeek, highlighting the similarities in market reactions to disruptive AI technologies [7][10]. Group 2: Comparison of Two Market Panics - The panic caused by Cowork is expected to be more prolonged than that of DeepSeek, as Cowork represents a novel AI application, while DeepSeek was a cheaper alternative to existing models [10]. - The market's response to both events shows a pattern of overreaction, with analysts suggesting that the fears may be exaggerated [9][10]. - Cowork's impact has spread beyond the U.S. to global markets, affecting stocks in London, Tokyo, and India, indicating a broader concern within the tech industry [11]. Group 3: SaaS Pricing Models and Challenges - Traditional SaaS pricing models are under pressure, with many companies shifting from fixed pricing to usage-based models due to increased efficiency and cost-cutting measures [14][15]. - The average SaaS company in the PricingSaaS 500 index has experienced 3.6 pricing changes per year, with a significant increase in companies adopting usage-based pricing [15]. - Companies like Salesforce have struggled with pricing strategies, leading to a transition from fixed pricing to more flexible models to accommodate rising operational costs [15][17]. Group 4: Emergence of AI-Native Startups - AI-native startups are gaining traction, with their revenue growth rates significantly outpacing traditional SaaS companies, highlighting a shift in enterprise spending towards these new players [18]. - For instance, companies like Harvey and Glean have achieved valuations of $5 billion and $7.25 billion, respectively, indicating strong investor interest in AI-driven solutions [18]. - The article notes that AI-native companies are expected to capture over half of enterprise AI spending, reflecting a fundamental change in the software landscape [18]. Group 5: Vibe Coding and Its Implications - The rise of Vibe Coding could lead enterprises to create their own tools rather than relying on third-party SaaS products, potentially disrupting traditional software markets [20][21]. - If Vibe Coding matures, it may enable employees to develop solutions quickly, reducing reliance on complex software development processes [21]. - The article suggests that traditional software companies may face a "three-step path to extinction" if they fail to adapt to these emerging trends [22].