Is Monday Stock Going to $128?

Year to date, shares of Monday.com (NASDAQ: MNDY) person fallen 46% to astir $80 astatine the clip of writing. The banal traded adjacent $300 successful July. But concerns that artificial quality (AI) agents could marque it easier for companies to physique their ain interior workflow automation tools person pushed investors to rein successful their maturation expectations.

So is the sell-off justified? Most Wall Street analysts inactive complaint the banal a buy, with an mean near-term terms people of $128, according to Yahoo! Finance. Let's instrumentality a person look astatine Monday.com's concern to spot whether the banal is worthy buying connected the dip.

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Monday.com reported beardown results for 2025. Full-year gross grew 27% twelvemonth implicit twelvemonth to $1.23 billion, and fourth-quarter gross didn't amusement immoderate meaningful weakening, with the apical enactment expanding 25% implicit the year-ago quarter.

The institution is not having occupation signing caller endeavor deals. Importantly, it is seeing beardown momentum among its largest clients. The fig of paid customers with much than $500,000 successful annualized recurring gross (ARR) grew 74% twelvemonth implicit twelvemonth -- much than doubly the complaint of maturation of customers with implicit $50,000 successful ARR.

Management noted beardown request for its caller AI products. Monday Vibe is the company's fastest-growing product, hitting $1 cardinal successful ARR. AI Agents, which is successful beta, is besides seeing beardown lawsuit interest. This shows that Monday could beryllium positioned to payment from the increasing request for agentic AI, alternatively than being replaced by it.

However, wherever the communicative falls isolated is its guardant guidance. Monday.com has consistently posted year-over-year quarterly gross maturation of much than 20% arsenic a nationalist company. But gross is expected to decelerate to 18% to 19% successful 2026.

More concerning is that absorption shied distant from discussing their erstwhile 2027 gross people of reaching $1.8 billion. CFO Eliran Glazer cited the "evolving quality of the AI scenery and the choppiness successful the no-touch request environment," which puts a unreality of uncertainty implicit Monday.com's prospects.

A fewer years ago, Monday.com looked similar a coagulated semipermanent maturation communicative successful workflow absorption software. But, arsenic absorption acknowledged, AI is rapidly changing the competitory landscape. Enterprise request is inactive strong, but small-business momentum appears to beryllium the anemic spot. Monday.com's caller show is accordant with The Motley Fool's research, which shows that AI adoption has been strongest among larger companies.