Stock Analysis | Workday Outlook - Bearish Momentum Gathers as Analysts and Technicals Weigh In

Market Snapshot

Headline Takeaway: Workday (WDAY) is under pressure with a recent price drop of -6.71% and a technical score of 1.73, signaling a weak trend and a clear bearish bias.

News Highlights

• Global Tariff Impact: U.S. plans to impose additional 25% tariffs on Indian exports may indirectly affect global supply chains and tech stocks, including WDAY. Analysts from GTRI warn this could cut Indian exports to the U.S. by up to 50%, potentially affecting cross-border software services.
• Industry Innovation: ProBuilt Software announced a patent-pending ERP platform, which could increase competition in the SaaS space. While not directly related to WDAY, it highlights the fast-moving nature of the tech sector and potential pressure on Workday’s market share.
• FTX Staking Developments: FTX’s recent staking of $80M in Ethereum has raised concerns over transparency and liquidity. Though unrelated to Workday’s core business, such market volatility could exacerbate the current downward trend in tech stocks.

Analyst Views & Fundamentals

Analysts are largely bearish, with a simple average rating of 2.00 and a performance-weighted rating of 0.00. This divergence highlights a lack of confidence among analysts, especially considering the poor historical performance of the sole active analyst, Brent Bracelin from Piper Sandler, who has a 0.00% win rate over recent predictions.

Current price action, with a decline of -6.71%, aligns with the generally negative sentiment. Here are some key fundamental values and their internal diagnostic scores (0-10):

• Net Cash Flow from Operating Activities per Share (YoY growth rate %): 32.05% with an internal diagnostic score of 3.00.
• Asset-Liability Ratio (%): 48.60% with an internal diagnostic score of 2.00.
• ROE (Diluted) (YoY growth rate %): 2.69% with an internal diagnostic score of 2.00.
• Profit-Market Value (Profit-MV): -2.73x with an internal diagnostic score of 2.00.
• Cash-UP: 0.44x with an internal diagnostic score of 3.00.
• Inventory Turnover Days: 210.31 days with an internal diagnostic score of 1.00.

While some factors, like operating cash flow and Cash-UP, show moderate strength, the low ROE and long inventory turnover days point to underlying operational challenges.

Money-Flow Trends

Workday is seeing mixed money-flow signals. While the overall inflow ratio stands at 0.5068, suggesting positive flow, the breakdown shows large and extra-large investors are diverging. Specifically:

• Large_trend: Negative (inflow ratio of 0.4806).
• Extra-large_trend: Positive (inflow ratio of 0.5239).
• Small_trend: Positive (inflow ratio of 0.5017).

With a fund flow score of 7.41 (score level: good), it appears institutional money is still rotating into the stock despite the bearish price action, though with some hesitation from larger players.

Key Technical Signals

Technically, Workday is struggling. Over the past five days, the stock has triggered multiple bearish signals:

• WR Oversold: Bias: bearish, internal diagnostic score: 1.41.
• MACD Death Cross: Bias: neutral to bearish, internal diagnostic score: 2.79.
• Bearish Engulfing: Bias: bearish, internal diagnostic score: 1.00.

These signals have appeared frequently in recent days: on August 1, 4, 5, and 7, 2025. The technical score is a weak 1.73, and the overall trend is described as “technical bias weak, suggest avoiding.”

Conclusion

Workday is facing a confluence of bearish technical signals, negative price action, and weak analyst sentiment. Despite relatively stable fundamentals like operating cash flow and cash position, the stock’s overall technical and market flow dynamics are clearly unfavorable. Investors should consider waiting for a more favorable entry point or reassess their exposure until the trend shows signs of reversal.