Workday, Chico's FAS: Trending Tickers

Workday (WDAY) shares are down in late trading after the company slashed its annual subscription revenue guidance.

Chico's FAS (CHS) shares jumped after the company announced it is being acquired by Sycamore Partners for $1 billion.

Yahoo Finance Live takes a look at some of the trending tickers of the day. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

JOSH LIPTON: Moving on, shares of Workday sinking this afternoon. That's after the cloud software company lowered its target for annual subscription revenue growth to a rate of between 17% and 19% over the next three years. Company citing the uncertain economic environment for the cut in guidance.

This one is interesting, Julie. Down today, Brent Bracelin, well-known analyst over at Piper, he was saying, he thinks this move really reflects two things. He was telling his clients. One is he says slightly more conservative stance after the appointment of the new CFO over there. And then yes, he pointed out the reality of macro headwinds starting to hit. He lowered his price target. But he does still stay overweight the name. So he still rates this one to buy.

JULIE HYMAN: Yeah, and Zane Rowe is the new CFO over there. He took over in June after the CFO Barbara Larson stepped down, so sort of setting a new tone at the company and resetting expectations. I mean, that said, besides Bracelin, the analyst commentary was kind of mixed as to-- you know, and you can see that kind of reflected in the stock, the negative reaction in the stock to this as well that not everybody was sort of saying, well, this is just sort of a new finance chief putting their stamp on the company.

JOSH LIPTON: It's a rough day. You can see the move there. Although year to date still, what a performer, 26%.

JULIE HYMAN: Yeah, not bad at. All right. Here's another one that caught my eye this morning. Chico's has been sold. Shares of the clothing retailer soaring after the company said it was being acquired by Sycamore Partners for a billion dollars. And it will be taken private as a result.

If you look at the per share price here, we're talking about $77.60, so getting a premium there. Chico's, you know it as a mall retailer. I know it as my mother-in-law's-- one of my mother-in-law's favorite retailers.

JOSH LIPTON: Shout out to the mother-in-law.

JULIE HYMAN: Yeah, exactly.

JOSH LIPTON: Always a good idea.

JULIE HYMAN: You know, that this is a retailer that's been quite popular with that kind of set. But it's also interesting, as we were talking about in our morning meeting, Sycamore Partners just has built this portfolio of these mall retailers. It's just really a fascinating one. I said it's like taking a tour of like the late '80s mall when you take a stroll through their holdings, right?

JOSH LIPTON: Yeah. So they've invested in Express, Lane Bryant, the limited. So, obviously, a firm that knows retail pretty well.

JULIE HYMAN: Yeah, so we'll see if they can do something with Chico's that has not been done with the firm before.