Workday (WDAY) is a cloud platform managing enterprise HR and finance that has integrated predictive AI, conversational assistants, and automated agents.

The stock had a 50% crash on AI fears, followed by an 80% rally causing a squeeze with the large short position. The long interest tracks the stock down and up.

Short interest tripled, lifting the crowded score to 70 and the squeeze score to 100, while the mark-to-market YTD P&L has turned negative recently.

Workday is a cloud-based software provider that large corporations use to manage their two most important assets: their people (HR) and their money (accounting). It is AI-adjacent, with agents, assistants, and predictive models.

Year to date the stock is down 10%, having fallen 50%, then rallied 80%.

Throughout this, short interest rose from 4% of float to a peak of 15% and is now 13%, the crowded score went from 30 to 70, and the squeeze score went from 0 to 100 and is now around 70.

The sell-off was part of the broader software sell-off, on concerns that AI would essentially clone the software platforms.

The bear case is that autonomous AI agents would destroy the subscription model, with hedge funds piling in short after technicals and management guidance.

The bull case is bargain hunters buying the dips, looking for free cash flow. In addition, there is talk of a Silver Lake buyout of the company.

The stock squeezed in July, with short interest falling 17% from its 25 June peak of 15% of float to 12.5% on 31 July, while the stock rallied 39% from $114 to $158.

The active long interest tracks the stock price, with sellers on the way down and buyers on the way up.

Active long interest fell from 30% to 27% into the March low and is back to 31%, while hedge fund long interest went from 5.2% to 4.3% and is now 4.9%.

They have been trend followers, or they have led the way up and down, not contrarian.

The short position has been growing the first half of the year, with the stock rallying recently, the mark-to-market P&L has gone from positive to negative, now -$1.7B YTD.

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