Workday, Inc. Class A (WDAY, Financial) (WDAY – $140)
Workday is the global leader in cloud-based software for human resources and finance departments at large enterprises. Around the world, businesses are embracing cloud computing to reduce costs and improve performance. When large companies transition their HR and finance applications to the cloud, they overwhelmingly choose Workday. Indeed, the company’s HR software boasts over 70% market share of cloud deployments in the Fortune 500. As the global software market steadily transitions to cloud, we believe Workday will have a clear path to significant revenue growth. Despite the company’s dominant competitive position and trajectory for sustained long-term growth, the stock trades at a lower multiple of revenue than other software companies that don’t share Workday’s competitive advantages. We view today’s discount as an opportunity to invest in one of the world’s most innovative companies at a reasonable price.
From Bill Nygren (Trades, Portfolio)'s Oakmark Fund first-quarter 2020 shareholder commentary.
