Workday (WDAY) Fell Due to a Reduction in 2025 Revenue Guidance

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Global Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, the MSCI World Index decreased by 1.8%, driven by the decline of mega-cap growth stocks. The Magnificent Seven represented over 22% of the MSCI World Index in the quarter, collectively experiencing a decline of 14%. The Hotchkis & Wiley Global Value Fund returned 5.96% in the quarter, outperforming the MSCI World Value Index’s 4.81% return. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Hotchkis & Wiley Global Value Fund highlighted stocks such as Workday, Inc. (NASDAQ:WDAY). Workday, Inc. (NASDAQ:WDAY) is a company that offers enterprise cloud applications. The one-month return of Workday, Inc. (NASDAQ:WDAY) was -4.73%, and its shares gained 5.50% of their value over the last 52 weeks. On July 1, 2025, Workday, Inc. (NASDAQ:WDAY) stock closed at $239.23 per share, with a market capitalization of $63.778 billion.

Hotchkis & Wiley Global Value Fund stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q1 2025 investor letter:

“Workday, Inc. (NASDAQ:WDAY) is a leader in cloud application software for back-office business functions including human capital management, financials management, and ERP (enterprise resource planning). Stock price was negatively impacted by a reduction in 2025 revenue guidance. Management noted the pressure on current year sales is macro-related. We believe Workday has a formidable competitive advantage that trades at an attractive valuation for a company with premier franchise potential.”

Workday (WDAY) Debuts AI Toolset to Customize and Connect AI Apps and Agents on the Workday Platform

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Workday, Inc. (NASDAQ:WDAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the first quarter, which was 89 in the previous quarter. Workday, Inc. (NASDAQ:WDAY) reported revenue of $2.24 billion in the fiscal first quarter of 2026, representing an increase of 13% year-over-year. While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Workday, Inc. (NASDAQ:WDAY) and shared the list of stocks Jim Cramer put under the microscope recently. Parnassus Core Equity Fund added Workday, Inc. (NASDAQ:WDAY) to its portfolio in Q1 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of WDAY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.