Workday, Inc. (NASDAQ:WDAY) is one of the Must-Watch AI Stocks on Wall Street. On September 17, Piper Sandler upgraded the stock to “Neutral” from Underweight and raised its price target to $235.00 from $220.00. The rating upgrade follows key announcements made at the company’s annual event, Workday Rising. Analysts led by Brent Bracelin said that they left Workday Rising encouraged by early signals that the company’s leadership is ramping up efforts to increase relevancy in the AI era via. Its three rece ...

Core Insights - Salesforce co-founder and CEO Marc Benioff highlighted the rapid growth of the company's AI agent technology, with over 12,000 AgentForce customers and $1.2 billion in revenue, marking a triple-digit growth rate [1][2] - The company anticipates third-quarter sales growth to slow to 8%-9%, down from 10% in the second quarter, while current remaining performance obligations rose 11% to $29.4 billion [2] - Salesforce has successfully taken government business from Palantir, with Benioff expressing confidence in the company's pricing strategy and aiming for double-digit growth rates [3][4] Company Performance - Salesforce's full-year non-GAAP operating margin guidance was raised slightly to 34.1% from 34% [2] - Despite a 24% decline in shares year-to-date, over 60% of sell-side analysts rate Salesforce stock as a Buy [4] - The company trades at an attractive 15x 2026E estimated enterprise value/free cash flow, compared to peers at 28x, indicating a 47% discount [5] Market Context - Concerns exist regarding the pace of AI demand amid a slowing US economy and fears that AI may disrupt traditional software [1][4] - Analysts believe that fears of AI negatively impacting the software industry are overblown, although Salesforce's ability to monetize AI will be crucial for its stock performance [5]

Veeva Systems (VEEV) FY Conference Summary Company Overview - Veeva Systems was founded in 2007 by Peter Gassner as a vertical CRM company focused on the life sciences industry, evolving into a vertically driven software business with over 50 products across eight different suites [4][5] - The company achieved a revenue run rate of $3 billion in the past fiscal quarter and aims to reach $6 billion by 2030, indicating a strong growth trajectory [5][6] Industry Context - The life sciences industry is currently facing macroeconomic uncertainties, but Veeva's subscription-based model has insulated it from some of these effects [9][10] - Customers in the life sciences sector are adapting to macro disruptions post-COVID, becoming more confident in navigating uncertainties [9][10] Business Segments - Veeva's business is divided into two main segments: commercial and R&D, with both segments contributing roughly equally to revenue [13][14] - The commercial side includes CRM, marketing analytics (Crossix), and data cloud products, while the R&D side focuses on clinical trials, regulatory management, and safety [13][14][27] Product Differentiation - The Crossix business, which focuses on marketing analytics, has been a significant contributor to recent growth, utilizing a technology platform that allows for precise targeting in healthcare marketing [17][18] - Veeva is migrating customers from Salesforce-based CRM to its own Vault CRM, with a goal to complete this transition by September 2030 [20][21] Market Position and Competition - Veeva faces competition from various companies in different areas, such as IQVIA in data and Medidata in clinical data, but it is unique in offering an integrated platform across multiple applications [32][33] - The total addressable market (TAM) for Veeva in life sciences is estimated at $20 billion, with significant room for growth as the company currently operates at a $3 billion run rate [37][38] Financial Performance and Growth Strategy - Veeva has maintained a strong profitability profile, with a non-GAAP operating margin of 46% in Q1, and guidance for 44% for the year [40][41] - The company is focused on disciplined capital allocation, primarily considering M&A opportunities to support new market entries [67][68] Future Outlook - Veeva aims to build an "industry cloud" for life sciences, integrating various applications to enhance operational efficiency [30][50] - The company is also exploring horizontal software opportunities, starting with CRM, which is seen as a potential growth engine beyond 2030 [52][54] Key Takeaways - Veeva's strong focus on the life sciences sector, combined with its subscription-based model and integrated product offerings, positions it well for future growth despite current market uncertainties [9][10][37] - The company's commitment to innovation, customer partnerships, and operational efficiency is expected to drive its long-term success [70][71]