A few years ago, it would have been unthinkable to imagine that Salesforce ( CRM ), widely considered the original cloud software company, would trade at discounted multiples of earnings. Salesforce has long been known to be a growth-at-all-costs company, prioritizingWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry tod ...

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]

Company Overview - Workday operates a flexible AI-powered, cloud-based platform that manages back-office functions for enterprise-scale businesses, including HR, finance, and customer service [4] - The company serves over 11,000 clients across various industries, including healthcare, financial services, and technology, with operations in more than 175 countries [2][4] Financial Performance - In fiscal 2Q26, Workday reported a revenue of $2.35 billion, reflecting a 13% year-over-year increase and exceeding forecasts by $10 million [9] - The non-GAAP EPS for the same quarter was $2.21, which was 9 cents higher than expected [9] - Workday's full-year guidance for fiscal 2026 subscription revenues is projected at $8.815 billion, indicating a 14% year-over-year growth, which is lower than the 16% growth achieved in fiscal 2025 [9] Market Position and Analyst Insights - Despite facing headwinds, analysts like Guggenheim's John DiFucci believe Workday's growth potential outweighs current challenges, with a Buy rating and a price target of $285, suggesting a 22% upside [10] - The stock currently has a Strong Buy consensus rating, with 22 Buy and 7 Hold ratings, and is trading at $233.50, with an average target price of $281.42, indicating a potential gain of 20.5% in the next 12 months [11] Industry Context - The AI and cloud software sector is experiencing growth, with AI driving recent market rallies, although Workday's stock has declined by 9.5% year-to-date due to temporary setbacks [1][5] - Analysts emphasize the importance of distinguishing between short-term declines and deeper structural issues, suggesting that fundamentally sound stocks may present investment opportunities during dips [6][7]

Core Insights - Veeva Systems has introduced Veeva Basics, a pre-configured and pre-validated software solution that is currently utilized by over 75 biotech companies to enhance efficiency and reduce costs across clinical, regulatory, and quality functions [1][2] - The adoption of Veeva Basics indicates a transition from fragmented entry-level tools to comprehensive, best-of-breed solutions that can support the growth of biotech companies [1][2] Group 1: Product Features and Benefits - Veeva Basics is designed for fast-growing companies, allowing for quick deployment and adoption regardless of company size, with solutions available for clinical, regulatory, and quality needs [2] - The introduction of Veeva CTMS Basics and Submissions Publishing Basics aims to provide biotechs with tools to manage clinical trials and regulatory submissions effectively [6] - The applications built on the Vault Platform enable customers to scale their technology infrastructure as their business grows [2] Group 2: Market Reception and Testimonials - Biotech leaders have praised Veeva Basics as a game changer, providing smaller companies access to modern applications typically reserved for larger organizations, thus ensuring they remain compliant with evolving regulatory requirements [3] - Users have reported that Veeva eTMF Basics enhances control over data and processes, facilitating inspection readiness and driving innovation in clinical trials [3] - The global support and training associated with Veeva Basics have been highlighted as key factors in maximizing the value derived from the software, resulting in significant time and resource savings [3] Group 3: Company Overview - Veeva Systems is recognized as the global leader in cloud software for the life sciences industry, serving over 1,000 customers, including major biopharmaceutical companies and emerging biotechs [4] - The company is committed to innovation, product excellence, and balancing the interests of all stakeholders, including customers, employees, and shareholders [4]

Core Insights - Veeva Systems has announced the launch of Veeva SiteVault CTMS, a clinical trial management system designed to enhance research site efficiency and integrate seamlessly with sponsors [1][2] - The system will be available for free to over 90% of research sites, specifically those managing up to 20 concurrent active studies, with an initial release planned for August 2025 [2] Group 1: Product Features and Benefits - Veeva SiteVault CTMS integrates with SiteVault eISF and SiteVault eConsent, allowing comprehensive management of clinical trials within a single system [1] - The integration with Veeva's Clinical Platform facilitates seamless bidirectional data flow between sites and sponsors, reducing manual processes and increasing efficiency [1][2] - The streamlined user experience provided by Veeva SiteVault is expected to enhance the speed of clinical trials, benefiting patients [2] Group 2: Company Commitment and Market Position - Veeva Systems is recognized as the global leader in cloud software for the life sciences industry, serving over 1,000 customers, including major biopharmaceutical companies and emerging biotechs [3] - As a Public Benefit Corporation, Veeva is dedicated to balancing the interests of all stakeholders, including customers, employees, and shareholders [3]