monday.com at the Center of AI Impact Debate Among Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Investor Debate Focus: According to Needham analyst Scott Berg, monday.com (MNDY) is at the center of the debate regarding the impact of artificial intelligence on software, with bearish sentiment amplified by its currently depressed valuation despite a growth rate of approximately 20%.
- Complexity of Customer Use: While some investors believe that lightweight alternatives to monday.com can be easily coded, Berg emphasizes that the complexity and governance required for large-scale use make simple replacements unlikely, which will continue to pressure its stock valuation.
- Growth Potential and Cash Flow: Berg maintains a Buy rating with a $125 price target, noting that monday.com's growth outpaces its software peers and its free cash flow continues to compound, with AI potentially representing a significant source of upside.
- Market Risks and Challenges: Despite ongoing enterprise momentum, Berg warns that AI-related search disruptions and rising costs could hurt gross margins, and there are ongoing debates about whether monday.com's products are truly “mission-critical,” which may pose challenges for its future performance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MNDY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MNDY
Wall Street analysts forecast MNDY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 70.920
Low
195.00
Averages
235.58
High
310.00
Current: 70.920
Low
195.00
Averages
235.58
High
310.00
About MNDY
Monday.Com Ltd is an Israel-based company engaged primarily in the software sector. The Company provides cloud-based platform that enables its users to create custom applications and project management software. The platform offers a Work Operating System (Work OS) that provides modular building blocks to create software applications and work management tools. This system is designed to enhance team collaboration and streamline workflows across various business functions, including project management, CRM, marketing, and more. The Company has teams in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev, and Sydney. The Company customize its platform to suit any business vertical and serves customers worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
monday.com at the Center of AI Impact Debate Among Investors
- Investor Debate Focus: According to Needham analyst Scott Berg, monday.com (MNDY) is at the center of the debate regarding the impact of artificial intelligence on software, with bearish sentiment amplified by its currently depressed valuation despite a growth rate of approximately 20%.
- Complexity of Customer Use: While some investors believe that lightweight alternatives to monday.com can be easily coded, Berg emphasizes that the complexity and governance required for large-scale use make simple replacements unlikely, which will continue to pressure its stock valuation.
- Growth Potential and Cash Flow: Berg maintains a Buy rating with a $125 price target, noting that monday.com's growth outpaces its software peers and its free cash flow continues to compound, with AI potentially representing a significant source of upside.
- Market Risks and Challenges: Despite ongoing enterprise momentum, Berg warns that AI-related search disruptions and rising costs could hurt gross margins, and there are ongoing debates about whether monday.com's products are truly “mission-critical,” which may pose challenges for its future performance.
See More
Monday.com Stock Declines Ahead of Earnings Report
- Stock Performance: Monday.com (MNDY) fell 2.2% to $75.56 in the latest trading session, underperforming the S&P 500's daily loss of 0.57%, indicating market caution regarding its future outlook.
- Earnings Expectations: The upcoming earnings report is anticipated to show an EPS of $1.14, reflecting a 4.59% year-over-year increase, while revenue is expected to reach $354.95 million, marking an 18.71% rise, which may attract investor interest.
- Analyst Ratings Stability: Despite no changes in the Zacks Consensus EPS estimate over the past 30 days, Monday.com holds a Zacks Rank of #3 (Hold), suggesting analysts maintain a neutral stance on its near-term business trends, reflecting cautious sentiment on profitability.
- Valuation Analysis: Currently trading at a Forward P/E ratio of 17.23, below the industry average of 18.65, indicating relative valuation attractiveness, although a PEG ratio of 1.37, higher than the industry average of 1.05, suggests ongoing market expectations for future growth.
See More
monday.com Transitions to AI Work Platform to Drive Growth
- Platform Transformation: On May 6, monday.com announced its transition from a work management platform to an AI Work Platform, introducing native AI agents that assist teams with routine tasks, showcasing the company's proactive approach in the automation sector.
- Financial Performance: In its first-quarter report, the company achieved revenue of $351.3 million, a 24% year-over-year increase, while GAAP operating income rose from $9.8 million to $19.8 million, indicating strong profitability and growth potential.
- Cash Flow Position: monday.com generated $104.7 million in operating cash flow and $102.8 million in adjusted free cash flow, reflecting robust financial management and operational efficiency that supports future expansion plans.
- Low Debt Advantage: The company holds approximately $1.21 billion in cash and cash equivalents against total liabilities of $933.5 million, demonstrating its low-debt financial health, which provides a solid foundation for further investments and growth.
See More
monday.com Appoints New EMEA General Manager
- Significant Revenue Growth: In 2025, monday.com achieved a 26% year-on-year revenue increase in the EMEA region, reflecting strong performance and sustained customer demand, which further solidifies its position in the global market.
- Leadership Change: Ben Barnett has been appointed as General Manager for EMEA, tasked with driving the company's go-to-market strategy and key partnerships, which is expected to accelerate monday.com's expansion in the AI work platform space and enhance customer experience and market competitiveness.
- Regional Expansion: monday.com has expanded its EMEA headquarters in London to 80,000 square feet, now housing over 370 employees, while also adding offices in Paris and Munich, demonstrating the company's commitment and investment in the region.
- Product Transformation: The company has completed its most significant product overhaul in history, transitioning from a work management solution to a unified AI work platform, aimed at enhancing work efficiency through automation and intelligence to meet the growing demands of customers.
See More
Oberndorf Exits Entire Stake in monday.com
- Full Exit: The fund controlled by William Oberndorf sold all 73,705 shares of monday.com in Q1 2026, valued at $7.07 million, marking a complete exit, with monday.com now representing 0% of the fund's reportable AUM.
- AUM Decline: This transaction resulted in a net position value drop of $10.88 million, reflecting not only the impact of the share sale but also price movements, indicating pressure on the fund in the current market environment.
- Poor Market Performance: As of May 13, 2026, monday.com shares were priced at $67.70, down 76.7% over the past year, significantly underperforming the S&P 500 by 103.16 percentage points, suggesting a weakening competitive position in the SaaS sector.
- Investor Confidence Erosion: Oberndorf's fund completely liquidated its stake in monday.com amid a broad sell-off, indicating a loss of confidence in the company while simultaneously seeking other investment opportunities, as evidenced by a 52% increase in its stake in Veeva Systems.
See More
Dropbox CEO Drew Houston Transitions to Executive Chairman Role
- Leadership Transition: Drew Houston, the founder and CEO of Dropbox, is transitioning to an executive chairman role while sharing CEO duties with Ashraf Alkarmi, who is being promoted from product chief, indicating a significant shift in leadership aimed at enhancing innovation and market responsiveness.
- Stable User Base: Dropbox boasts over 18 million paying users, maintaining a strong market position among media and design professionals despite fierce competition from Google and Apple, demonstrating the enduring appeal of its services.
- Stagnant Revenue Growth: Although Dropbox surpassed $2 billion in annual revenue in 2021, its revenue has remained flat over the past two years, reflecting challenges in a competitive landscape and the rapid evolution of the AI sector.
- AI Opportunities: Dropbox is leveraging AI technology to enhance user experience with the launch of its AI-powered Dash feature, which aids users in efficiently searching and interacting with documents, and analysts believe this could attract value investors despite pressures from emerging technologies.
See More
monday.com at the Center of AI Impact Debate Among Investors
- Investor Debate Focus: According to Needham analyst Scott Berg, monday.com (MNDY) is at the center of the debate regarding the impact of artificial intelligence on software, with bearish sentiment amplified by its currently depressed valuation despite a growth rate of approximately 20%.
- Complexity of Customer Use: While some investors believe that lightweight alternatives to monday.com can be easily coded, Berg emphasizes that the complexity and governance required for large-scale use make simple replacements unlikely, which will continue to pressure its stock valuation.
- Growth Potential and Cash Flow: Berg maintains a Buy rating with a $125 price target, noting that monday.com's growth outpaces its software peers and its free cash flow continues to compound, with AI potentially representing a significant source of upside.
- Market Risks and Challenges: Despite ongoing enterprise momentum, Berg warns that AI-related search disruptions and rising costs could hurt gross margins, and there are ongoing debates about whether monday.com's products are truly “mission-critical,” which may pose challenges for its future performance.
See More
Monday.com Stock Declines Ahead of Earnings Report
- Stock Performance: Monday.com (MNDY) fell 2.2% to $75.56 in the latest trading session, underperforming the S&P 500's daily loss of 0.57%, indicating market caution regarding its future outlook.
- Earnings Expectations: The upcoming earnings report is anticipated to show an EPS of $1.14, reflecting a 4.59% year-over-year increase, while revenue is expected to reach $354.95 million, marking an 18.71% rise, which may attract investor interest.
- Analyst Ratings Stability: Despite no changes in the Zacks Consensus EPS estimate over the past 30 days, Monday.com holds a Zacks Rank of #3 (Hold), suggesting analysts maintain a neutral stance on its near-term business trends, reflecting cautious sentiment on profitability.
- Valuation Analysis: Currently trading at a Forward P/E ratio of 17.23, below the industry average of 18.65, indicating relative valuation attractiveness, although a PEG ratio of 1.37, higher than the industry average of 1.05, suggests ongoing market expectations for future growth.
See More
monday.com Transitions to AI Work Platform to Drive Growth
- Platform Transformation: On May 6, monday.com announced its transition from a work management platform to an AI Work Platform, introducing native AI agents that assist teams with routine tasks, showcasing the company's proactive approach in the automation sector.
- Financial Performance: In its first-quarter report, the company achieved revenue of $351.3 million, a 24% year-over-year increase, while GAAP operating income rose from $9.8 million to $19.8 million, indicating strong profitability and growth potential.
- Cash Flow Position: monday.com generated $104.7 million in operating cash flow and $102.8 million in adjusted free cash flow, reflecting robust financial management and operational efficiency that supports future expansion plans.
- Low Debt Advantage: The company holds approximately $1.21 billion in cash and cash equivalents against total liabilities of $933.5 million, demonstrating its low-debt financial health, which provides a solid foundation for further investments and growth.
See More
monday.com Appoints New EMEA General Manager
- Significant Revenue Growth: In 2025, monday.com achieved a 26% year-on-year revenue increase in the EMEA region, reflecting strong performance and sustained customer demand, which further solidifies its position in the global market.
- Leadership Change: Ben Barnett has been appointed as General Manager for EMEA, tasked with driving the company's go-to-market strategy and key partnerships, which is expected to accelerate monday.com's expansion in the AI work platform space and enhance customer experience and market competitiveness.
- Regional Expansion: monday.com has expanded its EMEA headquarters in London to 80,000 square feet, now housing over 370 employees, while also adding offices in Paris and Munich, demonstrating the company's commitment and investment in the region.
- Product Transformation: The company has completed its most significant product overhaul in history, transitioning from a work management solution to a unified AI work platform, aimed at enhancing work efficiency through automation and intelligence to meet the growing demands of customers.
See More
Oberndorf Exits Entire Stake in monday.com
- Full Exit: The fund controlled by William Oberndorf sold all 73,705 shares of monday.com in Q1 2026, valued at $7.07 million, marking a complete exit, with monday.com now representing 0% of the fund's reportable AUM.
- AUM Decline: This transaction resulted in a net position value drop of $10.88 million, reflecting not only the impact of the share sale but also price movements, indicating pressure on the fund in the current market environment.
- Poor Market Performance: As of May 13, 2026, monday.com shares were priced at $67.70, down 76.7% over the past year, significantly underperforming the S&P 500 by 103.16 percentage points, suggesting a weakening competitive position in the SaaS sector.
- Investor Confidence Erosion: Oberndorf's fund completely liquidated its stake in monday.com amid a broad sell-off, indicating a loss of confidence in the company while simultaneously seeking other investment opportunities, as evidenced by a 52% increase in its stake in Veeva Systems.
See More
Dropbox CEO Drew Houston Transitions to Executive Chairman Role
- Leadership Transition: Drew Houston, the founder and CEO of Dropbox, is transitioning to an executive chairman role while sharing CEO duties with Ashraf Alkarmi, who is being promoted from product chief, indicating a significant shift in leadership aimed at enhancing innovation and market responsiveness.
- Stable User Base: Dropbox boasts over 18 million paying users, maintaining a strong market position among media and design professionals despite fierce competition from Google and Apple, demonstrating the enduring appeal of its services.
- Stagnant Revenue Growth: Although Dropbox surpassed $2 billion in annual revenue in 2021, its revenue has remained flat over the past two years, reflecting challenges in a competitive landscape and the rapid evolution of the AI sector.
- AI Opportunities: Dropbox is leveraging AI technology to enhance user experience with the launch of its AI-powered Dash feature, which aids users in efficiently searching and interacting with documents, and analysts believe this could attract value investors despite pressures from emerging technologies.
See More
