MNDY Should I Buy
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Monday.com Ltd (MNDY) is not a strong buy for a beginner investor with a long-term strategy at the moment. While the company has shown strong revenue and net income growth in its latest quarter, the withdrawal of its 2027 guidance, reduced analyst price targets, and bearish technical indicators suggest a lack of near-term upside potential. The stock's pre-market price of $76 is below key support levels, and the sentiment from analysts and options data is mixed to negative. For a long-term investor, it may be better to wait for clearer signs of recovery or stabilization before entering a position.
The technical indicators for MNDY are bearish. The MACD histogram is negative and contracting, RSI is neutral at 27.53, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot level of 83.941, with key support at 70.424 and resistance at 97.458. Overall, the trend suggests further downside risk.
Revenue increased by 24.59% YoY in Q4 2025, with net income up 233.37% YoY and EPS up 237.21% YoY.
Gross margin remains strong at 88.82%.
Withdrawal of 2027 guidance and reduced 2026 outlook.
Analysts have significantly lowered price targets, with some downgrading the stock to Neutral or Hold.
Bearish technical indicators and lack of near-term catalysts.
Options data reflects bearish sentiment.
Stock dropped over 20% after Q4 earnings due to falling operating income and margin pressure.
In Q4 2025, Monday.com reported strong financial growth: Revenue increased by 24.59% YoY to $333.88M, net income rose by 233.37% YoY to $76.69M, and EPS grew by 237.21% YoY to 1.45. Gross margin improved slightly to 88.82%. However, the company faces challenges with operating income and has withdrawn its 2027 guidance, signaling uncertainty in long-term growth.
Analysts have lowered price targets significantly, with most targets now between $80 and $135. Several firms, including Loop Capital and Baird, downgraded the stock to Neutral or Hold, citing weaker-than-expected guidance, margin pressure, and execution risks. While some analysts maintain a Buy rating, the overall sentiment is cautious, with limited near-term upside expected.
