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Shares of software maker Workday
dropped as much as 10% on Wednesday as analysts lowered their price targets, citing a lack of a upside after the company revised its full-year subscription revenue forecast.
Many software stocks have been under pressure in 2025 as commentators have worried that generative artificial intelligence tools that can quickly write lines of code might pose risks to incumbents.
This year, Workday has announced the launch of several AI agents and expanded its offerings through startup acquisitions. Earlier this month, Workday completed the $1.1 billion purchase of AI and learning software company Sana.
