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Workday Inc – Best Cloud Software Stocks To Buy

Workday is a financial and human capital management software provider. Its software technology is cloud-based and the company relies heavily on the SaaS model to earn revenue. Workday was interestingly included in the Fortune Top 100 Companies To Work For in 2020. It ranked 5th on that list. Workday specializes in an area that is part of a larger shift happening in the IT space. More and more companies are moving to a cloud-based setup which reduces its overheads and server costs. A cloud-based environment also makes it easy for software providers to deploy their products and perform updates and maintenance. So, the trend of shifting towards the cloud looks like a long-term one.

Workday Background

Workday was founded in March of 2005 by Dave Duffield and Aneel Bhusri. It was one of the first movers in cloud human capital management at a time when businesses in the US were looking at making the shift from on-premises setups to the cloud. Workday earns revenue by selling subscriptions to its software programs. It recognizes revenues over the life of multi-year subscription agreements. Workday crossed annual revenues of $1 billion for the first time in its history in the fiscal year 2016. The company has shown resilience during the pandemic as evident in its analyst-beating quarterly results. Employee engagement and human capital management became especially important during the pandemic. Software solutions that support those areas benefitted as a result.

Cloud Software Stocks To Buy Now

Cloud is one of the hottest themes in the technology industry right now. Therefore, if you are an investor who is looking to pick out stocks that specialize in cloud applications, then Workday, Amazon, Docusign, and Microsoft are potential candidates. Workday’s stock has done from $79 to $257 in 5 years. Docusign’s stock has gone from $39 to $251 in the same period. Amazon has gone from $675 to $3200 and Microsoft has risen from $55 to $223 over the past 5 years.

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