The stock closed Friday at $78.30, down 33% since hitting all-time high of $116 in February. Shares are down 6% year to date.
But an overreaction has caused Workday's recent decline.
The company is not lacking in confidence. Workday believes it can offer similar to slightly better services for prices that are close to 50% below what enterprises currently pay to Oracle and SAP.
Management deserves credit for its exceptional growth. To the extent the company can grow in areas like accounting and payroll, while at the same time shoring up the SaaS market, this stock should reach $100 by the second half of the year.
At the time of publication, the author held no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.