Monday.com (MNDY) Shares Drop 37.3% in 2025 Despite 26% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: Fool
- Significant Stock Decline: Monday.com shares fell 37.3% in 2025 and are down 70% from all-time highs, reflecting market concerns about the software sector, particularly regarding the potential impact of AI on traditional software demand.
- Continued Revenue Growth: Despite challenges, Monday.com reported a 26% year-over-year revenue increase, with a 37% rise in customers spending over $50,000 annually, indicating strong performance in customer spending and sustained market demand.
- Improved Profitability: The company has generated positive free cash flow since 2023, marking a significant improvement in profitability and laying the groundwork for future expansion, particularly in marketing and developer support.
- Market Opportunity: With a current market cap of $6.9 billion and a price-to-free cash flow ratio of around 20 based on $343 million in free cash flow, the company presents a potential buying opportunity for investors, especially if AI risks are perceived as overstated.
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Analyst Views on MNDY
Wall Street analysts forecast MNDY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MNDY is 235.58 USD with a low forecast of 195.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 115.570
Low
195.00
Averages
235.58
High
310.00
Current: 115.570
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.
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