Cloud services are most welcome

Many companies the recent time are showing more interest in cloud-based services for the huge benefits that it provide including the unlimited data storage and apps.

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Workday Inc. rose more than 9 percent after reporting revenue that topped analysts’ estimates, reassuring investors that demand for cloud-based software is growing despite concerns about the economy.

The company, which provides financial and human-resources software, late Monday said fourth-quarter sales rose 43 percent to $323.4 million. That topped estimates of $319.7 million, according to Bloomberg data. Workday also reported a narrower adjusted loss than was expected.

Chief Executive Officer Aneel Bhusri is benefiting from a growing customer list that shows businesses are moving more of their software to the cloud, holding off pressure from rivals and a global economy that’s struggling to gain momentum. The report comes less than a week after Salesforce.com Inc., which also delivers services via the Internet, issued a forecast that easily topped analysts’ estimates.

“Quietly and with little fanfare, we believe both the stock and the business
could be marking a turning point,” analysts at JPMorgan Chase & Co. said in a note. They upgraded the stock to overweight from neutral.

Shares of the stock rose 7.5 percent to $65.01 at 11:24 a.m. in New York, after being up as much as 9.2 percent earlier. The stock had fallen 24 percent this year through Monday’s close.

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