Jim Cramer says the slide in shares of enterprise cloud provider Workday may be an overreaction
Shares of Workday plunged Thursday after management lowered its outlook for subscription revenue growth.
Workday (WDAY) plunged on Thursday after management lowered its outlook for subscription revenue growth. Shares of the software company declined nearly 10%.
Jim Cramer described the long-term forecast, which was released on Wednesday, as "worrisome" but said Workday's past fundamentals have been solid.
The tech name has gained over 25% year to date.
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"This company has been straight-shooting so maybe we can feel whether the stock's [move] is an overreaction," Jim said.
BMO Capital says Workday, which provides cloud services for companies' HR and finance teams, can be conservative in its forecasts.
The CNBC Investing Club does not own Workday but holds shares of Salesforce (CRM), another enterprise software giant.
Workday Co-CEOs Carl Eschenbach and Aneel Bhusri will be on "Mad Money" on Thursday evening.
Here's a full list of the stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club.