Jim Cramer Declines Workday Stock as Shares Slide 47% and Targets Cut to $175–$230
Workday shares have tumbled 47% over the past year and 35% year-to-date, as BTIG cut its target to $230 from $285 and Stifel trimmed its forecast to $175 from $235 following the appointment of CEO Aneel Bhusri. Jim Cramer stated he’s not buying the stock, citing concerns over the firm’s escalating AI investment requirements.
1. Share Performance and Price Target Revisions
Workday shares have fallen 47% over the past 12 months and 35% year-to-date amid broad software sector weakness. On February 10, BTIG reduced its price target from $285 to $230 while maintaining a Buy, and days later Stifel cut its target to $175 from $235, signaling tempered growth expectations.
2. AI Strategy and CEO Appointment
The firm’s new CEO Aneel Bhusri faces pressure to navigate rising AI adoption costs, as analysts warn that enhanced R&D spending may weigh on margins. Oppenheimer maintains an Outperform rating, noting potential long-term benefits from Bhusri’s leadership in steering AI product integration.
3. Jim Cramer’s Investment Stance
CNBC host Jim Cramer publicly declared he is not buying Workday shares, expressing skepticism over whether the company’s platform will gain comparable traction in AI deployments. His cautious view underscores broader investor concern over Workday’s ability to justify further capital outlays in its AI roadmap.