Jim Cramer Talks About Effect of AI on Stocks Like Workday

Workday, Inc. (NASDAQ:WDAY) is one of the stocks Jim Cramer put under the microscope. Cramer discussed the effect of AI on the stock, as he said:

Second telltale sign that it was all just an artificial program and not the reality of business: The absurd, relentless buying of the enterprise software companies that had been written off for dead. Consider Workday. How many times did I hear in the last six months that Workday was going to be crushed by Anthropic, an AI company that can, let’s say, mimic pretty much every software company out there? I never fully believed that story, but it’s partially true, and it killed the entire cohort. The pessimism was so thick around Workday, the stock was practically untouchable. Sure enough, after it reported Tuesday night, its stock dropped 12 points like that, 130 down to 117 and change ultimately as the stock caught two downgrades and a ton of price target cuts.

But then midday, Workday started to rally, and it actually finished yesterday up nearly three bucks before tacking another six today. This thing went up 22 points from yesterday’s close… When you have a program trade taking over the market, the companies on the anointed buy list become winners. The fact that the quarter was excellent is almost beside the point. Workday’s guidance was dismal, and it’s rallied just as hard.

Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels

Workday, Inc. (NASDAQ:WDAY) provides cloud-based applications designed to help organizations manage financial processes, human resources, and business planning.

While we acknowledge the risk and potential of WDAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WDAY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.  Follow Insider Monkey on Google News.