Salesforce and Workday Stocks Plunge: Should You Buy the Dip?

Sarah Williams · 2026-06-23

SaaS stocks have taken a beating lately, and two of the biggest names in the game—Salesforce and Workday—are both down more than 30% from their highs. If you're watching your portfolio take a hit or just scouting for bargains, you're probably wondering: is this a buying opportunity or a value trap? Let's break down what's really going on with these two giants and figure out if either one deserves a spot in your portfolio right now. ### Why Are Salesforce and Workday Down So Much? The short answer is that the market is punishing high-growth SaaS companies that aren't delivering enough profit fast enough. Both Salesforce and Workday have seen their valuations get slashed as investors shift toward safer, more predictable returns. - Salesforce has been dealing with slowing revenue growth and activist investors pushing for margin improvements. - Workday, on the other hand, is facing headwinds from a tougher enterprise sales environment and concerns about its ability to keep up with competitors like Oracle and SAP. Neither company is broken. But in a market that's suddenly allergic to risk, even solid businesses can get hammered. ### Salesforce: The CRM King Trying to Reinvent Itself Salesforce remains the undisputed leader in CRM software, with a massive ecosystem and a sticky customer base. The company has been aggressively cutting costs, laying off thousands of employees, and focusing on profitability over growth at all costs. > "Salesforce is doing the right things operationally, but the stock won't recover until revenue growth stabilizes." — That's the sentiment from many analysts right now. For investors, the key question is whether Salesforce can maintain its market share while also boosting margins. The company's recent moves suggest it can, but it's going to take time. ### Workday: A Strong Niche Player with Growth Challenges Workday specializes in HR and financial management software, and it's a favorite among large enterprises. But its growth has slowed as the market matures and competition heats up. The company is still profitable and generating solid cash flow, but its stock price reflects the market's impatience with decelerating growth. If Workday can find new ways to expand—like deeper AI integration or international expansion—it could be a great long-term play. ### Should You Buy the Dip? Here's the honest truth: buying a stock just because it's down 30% is rarely a smart strategy. You need to look at the fundamentals. - **Salesforce**: Trading at around 25 times forward earnings, it's not cheap but not crazy either. If you believe in the company's ability to grow earnings at 15-20% annually, it could be a decent buy. - **Workday**: Priced at about 35 times forward earnings, it's more expensive but also has more room to grow if it executes well. Both stocks carry risk. But if you're a long-term investor with a high risk tolerance, these could be opportunities to pick up quality businesses at a discount. ### Final Thoughts The SaaS sell-off has created some interesting entry points, but don't let a falling price fool you into thinking something is a bargain. Do your own research, consider your time horizon, and remember that even great companies can have bad years. For now, I'd lean slightly toward Salesforce over Workday because of its stronger market position and more aggressive cost discipline. But honestly, neither is a slam dunk. Keep your eyes open and your expectations realistic.