Chart of the Day – $WDAY : Cloudy With A Chance of No Software Installs

by Enis September 30, 2013 1:35 pm • Commentary

WDAY is one of the story stocks that have been a huge winner in 2013.  It’s a nimble competitor in the enterprise cloud space, encroaching on ORCL and CRM’s turf over the last couple years. Think buzzwords “Cloud” and “Big Data.”

The company is not expected to report positive EPS for at least the next 3 years, but the stock itself has been on a tear after its IPO almost 1 year ago.  This is no small fry company either – it’s now worth more than $14 billion.

The chart shows the 2 big breakouts in 2013, along with the shorter-term up trend that has developed in the past couple months:

WDAY daily, Courtesy of Bloomberg
WDAY daily, Courtesy of Bloomberg

The stock broke out of consolidation in early March above $57, which it subsequently tested and held at its April lows.  It then broke out convincingly again in early August, and has not touched $70 ever since.

At the same time, the stock has been in a clean uptrend since June.  That trendline now comes into play around $76, with longer-term support at the August breakout level at $70.  This is just one more example of a stock that has followed the breakout-consolidate-breakout-consolidate-breakout to new all-time highs.