AI and Human Skills - 83% of employees globally believe AI will increase the importance of uniquely human skills [1] - The report identifies five human-centric skills that will be more important than AI in 2026 [1] Future Trends - The report includes evidence, trends, and methods for teaching these human-centric skills [1]

Core Viewpoint - Workday Inc. (NASDAQ: WDAY) is currently priced at $224.49, reflecting a slight increase of 0.20% in the current market session, but has experienced a decline of 2.74% over the past month and 19.35% over the past year, raising questions about its valuation despite current performance [1]. Past Year's Performance - The stock price of Workday has shown a downward trend over the past year, with specific price points noted in a chart format, indicating a significant decline from earlier values [4]. Comparing Workday P/E Against Its Peers - The P/E ratio is a critical metric for evaluating Workday's market performance, with the company having a lower P/E ratio compared to the software industry's aggregate P/E of 94.94, suggesting potential undervaluation despite the possibility of weaker performance relative to peers [5][6]. - A lower P/E ratio may indicate that investors expect less growth or financial instability, but it can also suggest that the stock is undervalued, warranting further analysis [8].

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.

Group 1 - Strada announces a strategic partnership with Workday as a Workday Wellness partner [1]

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]

Core Insights - The AI sector is experiencing rising valuations and increased capital spending, but caution is advised due to potential overvaluations and market sentiment shifts [2][4] - Bill Gates emphasized that not all high-valuation AI companies will succeed, indicating a competitive landscape [2] - BlackRock's Ben Powell highlighted that the AI infrastructure ecosystem, including chipmakers and energy suppliers, may benefit more from investments than model developers [3] Industry Overview - European regulators are urging caution regarding concentrated exposure among U.S. hyperscalers like Nvidia, Alphabet, Microsoft, and Meta, noting that market sentiment could change if growth expectations stall [4] - The European Central Bank's 2025 Financial Stability Review pointed out the need for differentiation among AI stock picks due to a mix of FOMO-driven investment and solid earnings growth [4] Investment Methodology - The list of the 15 best AI stocks to watch was curated based on financial media, ETFs, and hedge fund interest as of Q3 2025, focusing on stocks with significant upside potential [7][8] Company Highlights - Workday, Inc. (NASDAQ:WDAY) has a hedge fund holder count of 64 and an upside potential of 25.31%, but faces mixed growth signals due to market saturation [9][10] - Block, Inc. (NYSE:XYZ) has a hedge fund holder count of 64 and an upside potential of 37.47%, with sustained momentum in its Square and Cash App ecosystems [14][15] - Nebius Group N.V. (NASDAQ:NBIS) has a hedge fund holder count of 65 and an upside potential of 66.40%, with significant partnerships with Microsoft and Meta driving its growth [19][20]

Core Viewpoint - Workiva Inc. has appointed Barbara Larson as the new Executive Vice President and Chief Financial Officer, effective January 20, 2026, to enhance its financial strategy and operations as the company aims for profitable growth and global expansion [1][3]. Group 1: Appointment Details - Barbara Larson has over 20 years of experience in financial leadership, previously serving as CFO at SentinelOne and holding significant roles at Workday, where she led finance, accounting, internal audit, and investor relations [2][4]. - Larson's appointment is seen as a strategic move to leverage her expertise in AI and financial transformation, which aligns with Workiva's focus on building trust and transparency with stakeholders [3][4]. Group 2: Transition Information - Jill Klindt, the current CFO, will step down in 2025, with a transition period leading to her departure on December 26, 2025. Julie Iskow will serve as Interim CFO until Larson's official start date [5]. - Iskow will continue her role as President and CEO during the interim period, ensuring continuity in leadership [5]. Group 3: Company Overview - Workiva Inc. is recognized for its AI-powered platform that enhances transparency, accountability, and trust, serving over 6,500 organizations, including more than 85% of Fortune 1,000 companies [9]. - The company focuses on transforming how customers connect data and unify processes in a secure, audit-ready environment [9].

AI and Human Skills - 83% of employees globally believe AI will increase the importance of uniquely human skills [1] - The report identifies five human-centric skills that will be more important than AI in 2026 [1] Future Trends - The report includes evidence, trends, and methods for teaching these human-centric skills [1]

Core Insights - The S&P 500's quarterly rebalancing on December 22 includes Carvana, marking a significant and unexpected recovery for the company [1][5] - Carvana's inclusion in the index is notable given its near-collapse in 2022, highlighting a remarkable turnaround in its business performance [2][10] - Following the announcement, Carvana's stock surged nearly 10% in after-hours trading, contributing to a 97% year-to-date gain and nearly 30% increase in the past month [3][4] Company Performance - Carvana is experiencing record profits and significant unit expansion, positioning itself for continued growth [3][10] - The addition of Carvana to the S&P 500 indicates that it has reached a scale that attracts institutional investment, enhancing its market visibility and trading volume [9][10] Index Changes - Alongside Carvana, several companies are being removed from the S&P 500, including CRH plc, Comfort Systems USA, LKQ Corp., Solstice Advanced Materials, and Mohawk Industries [6][8] - The reshuffling of the index reflects ongoing changes in market dynamics and company performances [5][6]