The Play on DATA and WDAY
Disclaimer: I'm invested in DATA but not yet dipped my toe in WDAY.
If you are connected to the cloud and analytics enterprise software community, you know these companies. Simply put, their products are game changers and hence the phenomenal growth and high multiples on revenue they get.
Their stock prices are now in free-fall. A couple of things to note before I make a recommendation:
1) Crossing the Chasm - Early adopters have enjoyed huge benefits from their implementations, but it's not mainstream. Expect a slow down in revenues. It will take time before the giant sloths invest.
2) Momentum Traders - The fall is hard and shorters are all-in. Service provider NOW got slammed after beating on revs and eps. Irrational trading has taken hold.
Here's the good news. WDAY and DATA will rebound in 2015 or get bought. Their IPO share price is a great bottom to consider. Nothing has really changed since then. Pick a strategy of dollar cost averaging on the way down --- with the bottom being their IPO price. It's not clear how far they will fall, but what is clear is the amazing value proposition they offer to their customers -- and that simply hasn't changed since their initial offering.