Workday Inc is a HR, Planning and management software business. The stock holds cluster support with targets at $300. Support goes all the way down to $216

Workday Inc (NASDAQ: "WDAY") is a US-based management systems software provider specialising in HR, Finance and planning. For more information about what they do you can find their website here.

From a financial aspect, the stock is strong. Total market capitalisation is $62.4bn with 2020 revenue at $4.3bn and a loss after tax of $282m. Looking into this year turnover will be about $4.9bn with a potential to turn a profit of about $100m. looking at the balance sheet, cash on hand is $3.3bn with total assets at $9.1bn. Total liabilities sit at $5.245bn, leaving net positive $3.86bn. This gives Workday a L/A ratio of 73.5% which is quite high for a tech company.

From a technical aspect, the stock looks strong and the recent drop could provide a buying opportunity. MACD is negative but looks to be bottoming out. The RSI reads 47 giving a neutral direction. Support for the stock sits at $246 followed by $229 and then $216. A clear break below here could signal further downside. Looking to the upside initial targets are $278 followed by $300.

Overall this stock is well placed within its industry, tie this in with potential profitability this year investors are getting excited. Workday is on the risker side of things as a $60bn valuation could give doubts as to how further it can go. Is a $4-$6bn turnover business worth $60/$80bn? - Of which makes a $100m profit.