Workday is a very expensive stock that's doing pretty well, TheStreet's Jim Cramer said.
The company is "doing incredibly well moving into the vertical for human capital management and also getting into the financial side," Cramer said.
"I think Workday is a very, very expensive stock that is doing well. This will be a tell for Tableau Software (DATA) - Get Report, for Splunk (SPLK) - Get Report, even for Salesforce.com (CRM) - Get Report , so look for Workday -- if it goes higher, it's going to send a lot of other stocks higher that are high multiple stocks," he added.
Wall Street analysts expect the company to narrow its loss and show more than 50% sales growth from a year ago.
Forecasts are for a loss of 8 cents a share on revenue of $245 million, according to Thomson Reuters.
In the same quarter last year, Workday posted a loss of 13 cents a share, two cents better than forecasts. On the top line, the company posted revenue of $160 million, roughly $8 million better than forecasts.
On Thursday, Brean Capital analysts said they were maintaining their hold rating on Workday shares despite a belief that the company will be beat second quarter forecasts.
"We are incrementally concerned about a potential bubble during the next several quarters where HCM may slow before financials pick up," Brean said. "As a result, we are advising investors to trim positions and look to add lower."
The analysts also believe that, given the company's corporate structure, any deal activity is highly unlikely right now.
Over the past year, shares of Workday are up roughly 12.5% at a little more than $92 a share.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.