Investors Seek Value in Software Sector Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Source: CNBC
- Market Recovery Signs: Despite the iShares Expanded Tech-Software Sector ETF (IGV) plummeting 35.7% in 2022, it rebounded 58% in 2023, indicating renewed investor interest in the software sector, particularly as they seek undervalued companies.
- Investment Opportunity in Workday: First Eagle Investments believes Workday has been unfairly punished, as its stock is down over 53% from recent highs, yet its critical role among Fortune 500 companies makes it a solid investment choice, returning approximately 33% over the past year.
- Adobe's Buyback Plan: Adobe's board authorized a $25 billion share repurchase program, reflecting confidence in the company's outlook, with the stock rebounding over 5% this month, attracting investor attention.
- Potential of Market Leaders: Analyst Gil Luria highlighted companies like ServiceNow, Dynatrace, and Box trading below cash flow levels, showing good growth and resilience despite market fluctuations, indicating opportunities for success amid technological disruption.
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Analyst Views on WDAY
Wall Street analysts forecast WDAY stock price to rise
31 Analyst Rating
22 Buy
9 Hold
0 Sell
Moderate Buy
Current: 129.340
Low
235.00
Averages
275.19
High
325.00
Current: 129.340
Low
235.00
Averages
275.19
High
325.00
About WDAY
Workday, Inc. is a provider of an artificial intelligence (AI) platform to help organizations manage their people, money, and agents. The Company provides over 11,000 organizations with cloud solutions powered by AI to help solve business challenges, including supporting and empowering their workforce, managing their finances and spending in an ever-changing environment, and planning for the unexpected. It offers Financial Management, Spend Management, Human Capital Management (HCM), Planning, and Analytics applications. The Company sells its solutions worldwide primarily through direct sales. It also offers professional services, both directly and through its Workday Services Partners, to help customers deploy its solutions. It offers businesses flexible solutions to help them adapt to their industry-specific needs and respond to change. It serves various industries, including professional and business services, financial services, healthcare, education, government, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Workday Set to Announce Q1 Earnings on May 21
- Earnings Announcement Date: Workday (WDAY) is scheduled to release its Q1 2023 earnings on May 21 after market close, with a consensus EPS estimate of $2.52, reflecting a 13% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: Analysts forecast revenue to reach $2.52 billion, up 12.5% year-over-year, showcasing the company's strong growth potential in the cloud computing sector despite facing industry challenges.
- Historical Performance: Over the past two years, Workday has beaten both EPS and revenue estimates 100% of the time, demonstrating strong management capabilities in financial forecasting and execution, which bolsters investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 16 upward revisions and 15 downward revisions, while revenue estimates have had no upward revisions and 29 downward revisions, indicating market divergence in expectations for Workday's future performance, which may impact stock price volatility.
See More
Workday to Release Q1 Earnings on May 21
- Earnings Release Announcement: Workday, Inc. is set to announce its Q1 earnings on May 21, with analysts projecting an EPS of $2.52 and revenue of $2.52 billion, indicating cautious market expectations regarding the company's performance.
- Stock Price Movement: Ahead of the earnings report, Workday's stock fell by 2.1% on Wednesday, reflecting investor concerns about the upcoming financial data, which could impact short-term market performance.
- Analyst Perspectives: Despite the stock decline, analysts remain optimistic about Workday's long-term growth potential, believing that its strong position in cloud computing and human capital management software will continue to drive future revenue growth.
- Market Reaction: Investor sentiment appears cautious ahead of the earnings release, which may affect Workday's short-term stock price trajectory, especially in the current economic climate where businesses are becoming more conservative in their spending and investment strategies.
See More
Nvidia's Strong Earnings Report Sparks Attention
- Strong Earnings: Nvidia's earnings report reveals nearly doubling year-over-year data center revenue, indicating relentless demand for its GPUs, although shares slipped in after-hours trading as investors scrutinized future guidance and rising competition.
- IPO Frenzy: SpaceX has filed for an IPO aiming to raise around $75 billion, surpassing Alibaba's record for the largest IPO, highlighting the intensifying competition among tech companies for public offerings, which could significantly impact market sentiment.
- Stabilizing Semiconductor Supply Chains: Samsung Electronics has reached a tentative agreement with its union to suspend a planned strike, likely providing temporary relief to global semiconductor supply chains critical for the ongoing AI boom.
- Market Rebound: Wall Street staged a strong rebound with the Dow surging over 600 points due to easing oil prices and moderating rate concerns, leading to a positive sentiment that has also lifted Asia-Pacific markets.
See More
Key Earnings Reports and Economic Data to Watch on May 21
- Walmart Earnings Focus: Walmart is set to announce its Q1 earnings before the market opens, with investors keen to see if its value positioning continues to attract higher-income consumers while expanding margins through advertising and services like Walmart Plus, despite tariff pressures.
- Take-Two Quarterly Results: Take-Two will report its quarterly results on Thursday, with analysts focusing on whether its core franchises, such as NBA 2K and Grand Theft Auto Online, can sustain spending ahead of the highly anticipated GTA 6 launch later this year.
- Housing Market Data: April housing starts are expected to come in at an annualized rate of 1.42 million, down from March's figures, while building permits are anticipated to tick slightly higher, indicating subtle shifts in the market.
- Stable Jobless Claims: Economists forecast weekly jobless claims to hold steady at 210,000, signaling a stable job market, a key indicator that the Fed is closely monitoring as it navigates interest rate policy.
See More
US Stocks Rebound Led by Semiconductor Gains
- Market Rebound: The S&P 500 index rose by 0.78%, the Dow Jones Industrial Average increased by 0.75%, and the Nasdaq 100 climbed by 1.24%, indicating a recovery amid lower bond yields and strong semiconductor stock performance, reflecting investor confidence in economic recovery.
- Bond Yield Decline: The 10-year T-note yield fell by 5 basis points to 4.62% as inflation expectations weakened, driven by a more than 3% drop in WTI crude oil prices, which provides support for the bond market and may prompt investors to reassess risk assets.
- Semiconductor Sector Strength: Nvidia's stock rose over 1% ahead of its earnings report, with Q1 sales expected to increase by 80% year-over-year, drawing market attention to its production ramp-up and competitive strategies, which could significantly impact its stock price and the broader AI economy.
- Mortgage Applications Drop: US MBA mortgage applications fell by 2.3% in the week ending May 1, with the purchase mortgage sub-index down 4.1%, indicating pressure on the housing market from high interest rates, which may lead to a slowdown in future consumer spending and investment.
See More
U.S. Stocks Edge Up, Led by Semiconductor Gains
- Market Recovery: The S&P 500 index rose by 0.27%, the Dow Jones Industrial Average increased by 0.09%, and the Nasdaq 100 index climbed by 0.55%, indicating a gradual recovery of some losses this week, driven by lower bond yields and strong semiconductor stock performance.
- Bond Yield Decline: The 10-year Treasury note yield fell by 2 basis points to 4.65%, as inflation expectations weakened due to a more than 2% drop in WTI crude oil prices, providing support for the bond market and potentially influencing future interest rate decisions.
- Semiconductor Sector Strength: Nvidia's stock rose by 0.6%, with the market keenly awaiting its upcoming earnings report, which is expected to show an 80% year-over-year increase in Q1 sales, providing crucial insights into the state of the AI economy and potentially impacting industry competition.
- Mortgage Applications Drop: U.S. MBA mortgage applications fell by 2.3% in the week ending May 1, with the purchase mortgage sub-index down 4.1%, reflecting that despite the average 30-year fixed mortgage rate rising to 6.56%, housing demand remains weak, which could have long-term implications for the real estate market.
See More
Workday Set to Announce Q1 Earnings on May 21
- Earnings Announcement Date: Workday (WDAY) is scheduled to release its Q1 2023 earnings on May 21 after market close, with a consensus EPS estimate of $2.52, reflecting a 13% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: Analysts forecast revenue to reach $2.52 billion, up 12.5% year-over-year, showcasing the company's strong growth potential in the cloud computing sector despite facing industry challenges.
- Historical Performance: Over the past two years, Workday has beaten both EPS and revenue estimates 100% of the time, demonstrating strong management capabilities in financial forecasting and execution, which bolsters investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 16 upward revisions and 15 downward revisions, while revenue estimates have had no upward revisions and 29 downward revisions, indicating market divergence in expectations for Workday's future performance, which may impact stock price volatility.
See More
Workday to Release Q1 Earnings on May 21
- Earnings Release Announcement: Workday, Inc. is set to announce its Q1 earnings on May 21, with analysts projecting an EPS of $2.52 and revenue of $2.52 billion, indicating cautious market expectations regarding the company's performance.
- Stock Price Movement: Ahead of the earnings report, Workday's stock fell by 2.1% on Wednesday, reflecting investor concerns about the upcoming financial data, which could impact short-term market performance.
- Analyst Perspectives: Despite the stock decline, analysts remain optimistic about Workday's long-term growth potential, believing that its strong position in cloud computing and human capital management software will continue to drive future revenue growth.
- Market Reaction: Investor sentiment appears cautious ahead of the earnings release, which may affect Workday's short-term stock price trajectory, especially in the current economic climate where businesses are becoming more conservative in their spending and investment strategies.
See More
Nvidia's Strong Earnings Report Sparks Attention
- Strong Earnings: Nvidia's earnings report reveals nearly doubling year-over-year data center revenue, indicating relentless demand for its GPUs, although shares slipped in after-hours trading as investors scrutinized future guidance and rising competition.
- IPO Frenzy: SpaceX has filed for an IPO aiming to raise around $75 billion, surpassing Alibaba's record for the largest IPO, highlighting the intensifying competition among tech companies for public offerings, which could significantly impact market sentiment.
- Stabilizing Semiconductor Supply Chains: Samsung Electronics has reached a tentative agreement with its union to suspend a planned strike, likely providing temporary relief to global semiconductor supply chains critical for the ongoing AI boom.
- Market Rebound: Wall Street staged a strong rebound with the Dow surging over 600 points due to easing oil prices and moderating rate concerns, leading to a positive sentiment that has also lifted Asia-Pacific markets.
See More
Key Earnings Reports and Economic Data to Watch on May 21
- Walmart Earnings Focus: Walmart is set to announce its Q1 earnings before the market opens, with investors keen to see if its value positioning continues to attract higher-income consumers while expanding margins through advertising and services like Walmart Plus, despite tariff pressures.
- Take-Two Quarterly Results: Take-Two will report its quarterly results on Thursday, with analysts focusing on whether its core franchises, such as NBA 2K and Grand Theft Auto Online, can sustain spending ahead of the highly anticipated GTA 6 launch later this year.
- Housing Market Data: April housing starts are expected to come in at an annualized rate of 1.42 million, down from March's figures, while building permits are anticipated to tick slightly higher, indicating subtle shifts in the market.
- Stable Jobless Claims: Economists forecast weekly jobless claims to hold steady at 210,000, signaling a stable job market, a key indicator that the Fed is closely monitoring as it navigates interest rate policy.
See More
US Stocks Rebound Led by Semiconductor Gains
- Market Rebound: The S&P 500 index rose by 0.78%, the Dow Jones Industrial Average increased by 0.75%, and the Nasdaq 100 climbed by 1.24%, indicating a recovery amid lower bond yields and strong semiconductor stock performance, reflecting investor confidence in economic recovery.
- Bond Yield Decline: The 10-year T-note yield fell by 5 basis points to 4.62% as inflation expectations weakened, driven by a more than 3% drop in WTI crude oil prices, which provides support for the bond market and may prompt investors to reassess risk assets.
- Semiconductor Sector Strength: Nvidia's stock rose over 1% ahead of its earnings report, with Q1 sales expected to increase by 80% year-over-year, drawing market attention to its production ramp-up and competitive strategies, which could significantly impact its stock price and the broader AI economy.
- Mortgage Applications Drop: US MBA mortgage applications fell by 2.3% in the week ending May 1, with the purchase mortgage sub-index down 4.1%, indicating pressure on the housing market from high interest rates, which may lead to a slowdown in future consumer spending and investment.
See More
U.S. Stocks Edge Up, Led by Semiconductor Gains
- Market Recovery: The S&P 500 index rose by 0.27%, the Dow Jones Industrial Average increased by 0.09%, and the Nasdaq 100 index climbed by 0.55%, indicating a gradual recovery of some losses this week, driven by lower bond yields and strong semiconductor stock performance.
- Bond Yield Decline: The 10-year Treasury note yield fell by 2 basis points to 4.65%, as inflation expectations weakened due to a more than 2% drop in WTI crude oil prices, providing support for the bond market and potentially influencing future interest rate decisions.
- Semiconductor Sector Strength: Nvidia's stock rose by 0.6%, with the market keenly awaiting its upcoming earnings report, which is expected to show an 80% year-over-year increase in Q1 sales, providing crucial insights into the state of the AI economy and potentially impacting industry competition.
- Mortgage Applications Drop: U.S. MBA mortgage applications fell by 2.3% in the week ending May 1, with the purchase mortgage sub-index down 4.1%, reflecting that despite the average 30-year fixed mortgage rate rising to 6.56%, housing demand remains weak, which could have long-term implications for the real estate market.
See More
