“AI Loser” Narrative Pressured Workday (WDAY) in Q1

“AI Loser” Narrative Pressured Workday (WDAY) in Q1 Soumya Eswaran Wed, June 3, 2026 at 3:20 PM GMT+2 3 min read WDAY MSTR Brown Advisory , an investment management company, released its “Brown Advisory Global Leaders Strategy” for the first quarter of 2026 investor letter. A copy of the letter can be downloaded here . The strategy focused on delivering strong long-term performance by investing in a focused portfolio of companies that solve customer problems and provide good returns for shareholders.

The first quarter of 2026 saw intensified challenges in capital markets, marked by a general weakness in risk assets and negative perceptions around the "AI loser" narrative, significantly impacting the portfolio’s concentrated holdings. Additionally, not being invested in the Energy sector contributed to the underperformance, accounting for about 20% of the Strategy's relative decline year-to-date. Overall, the Strategy experienced an absolute correction of about 8.

3% in the quarter, underperforming relative to the MSCI ACWI Net Return Index’s -3. 2% return. In addition, please check the fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Brown Advisory Global Leaders Strategy highlighted Workday, Inc. (NASDAQ: WDAY ). Workday, Inc.

(NASDAQ:WDAY) is a leading enterprise software company that provides cloud applications for human resources and financial management. On June 2, 2026, Workday, Inc. (NASDAQ:WDAY) closed at $148.

88 per share. One-month return of Workday, Inc. (NASDAQ:WDAY) was 21.

41%, and its shares gained 40. 32% over the past 52 weeks. Workday, Inc.

(NASDAQ:WDAY) has a market capitalization of $36. 77 billion. Brown Advisory Global Leaders Strategy stated the following regarding Workday, Inc.

(NASDAQ:WDAY) in its Q1 2026 investor letter: "Workday, Inc. (NASDAQ:WDAY) Class A, provides software-based enterprise business solutions. Workday’s share price was materially impacted by the market’s “AI loser” narrative.

The company’s data model operates as a single source of truth and creates significant value for its customers, as reflected in retention rates of over 95%. We believe there is a tremendous opportunity for some incumbent SaaS vendors, such as Workday, to harness AI to deliver improved solutions for customers based on their core “system of record. ”" Workday (WDAY) Debuts AI Toolset to Customize and Connect AI Apps and Agents on the Workday Platform Workday, Inc.

(NASDAQ:WDAY) is not on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 63 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the first quarter, compared to 70 in the previous quarter.

In the first quarter of fiscal 2027, Workday, Inc. (NASDAQ:WDAY) reported total revenue of $2. 542 billion, up 13% year-over-year.

While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

Story Continues In  another article , we covered Workday, Inc. (NASDAQ:WDAY) and shared the list of most undervalued AI stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2026  page for more investor letters from hedge funds and other leading investors.

READ NEXT:  33 Stocks That Should Double in 3 Years  and  15 Stocks That Will Make You Rich in 10 Years . Disclosure: None. This article is originally published at Insider Monkey .