HX Trader Position Update

Back in March we recommended shares of one of the best software companies in the world in the last decade.

That company is workplace management software provider Workday, Inc. (NASDAQ: WDAY).

The company has an incredible history of both growth and beating expectations.

We liked the shares as they had sold off on the back of another strong quarter but with some “noise” around guidance. They also happened to do so right after another major software company (Snowflake Inc. (NASDAQ: SNOW)) had just reported poor results.

We felt they would report and beat numbers again and the stock would recover.

We were right about the first part, but wrong about the second.

The company reported last night and - indeed - once again exceeded analysts expectations for both revenue and EPS. Unfortunately, the company repeated the pattern of the last quarter and gave disappointing guidance.

As a result the stock is down this morning.

With our strategy at HX Trader, this is always a risk and we are prepared for it. We are executing our “stop loss” discipline and recommending closing out the position.

We still think it is a great company and eventually the shares may be much higher, but we are sticking with our process.

Plan the Trade, Trade the Plan.

We recommend selling shares of Workday, Inc. (NASDAQ: WDAY).