monday.com (NASDAQ:MNDY) Shares Gap Down - Should You Sell?

Key Points

• monday.com shares fell sharply, opening at $81.40 after previously closing at $93.13, despite the company beating second-quarter earnings and revenue expectations.
• Management projected third-quarter revenue of $368 million to $370 million, below analysts’ roughly $372.8 million consensus, and left its full-year 2026 outlook unchanged—raising concerns about slowing growth.
• The company is restructuring around AI and enterprise customers, including cuts of about 630 employees. Analysts remain broadly positive, with a “Moderate Buy” consensus and a $126.78 average price target, though some firms maintain sell or hold ratings.

monday.com Ltd. (NASDAQ:MNDY - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $93.13, but opened at $81.40. monday.com shares last traded at $85.4510, with a volume of 1,409,599 shares changing hands.

monday.com News Roundup

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: monday.com reported second-quarter adjusted earnings of $1.48 per share, above the $1.11–$1.14 consensus range, while revenue reached $364.6 million versus expectations of approximately $355.6 million. Revenue increased 21.9% year over year, and margins improved. monday.com revenue outlook weighs on shares despite Q2 earnings beat
• Neutral Sentiment: Management forecast third-quarter revenue of $368 million to $370 million, representing 16% to 17% year-over-year growth, and reaffirmed its full-year 2026 revenue outlook rather than raising it after the quarterly beat. monday.com earnings and guidance
• Negative Sentiment: Third-quarter revenue guidance was below the approximately $372.8 million analyst consensus. The modest outlook raised concerns that growth is slowing faster than expected, overshadowing the better-than-expected Q2 results. monday.com falls after Q3 revenue outlook miss
• Negative Sentiment: The company is restructuring around its AI Work Platform and enterprise customers, including a previously announced workforce reduction of roughly 20%—about 630 employees. Although intended to support longer-term efficiency and AI growth, the organizational disruption adds uncertainty for investors. monday.com workforce reduction and AI restructuring

Analyst Upgrades and Downgrades

MNDY has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of monday.com in a research report on Thursday, June 11th. Tigress Financial lowered their price target on shares of monday.com to $165.00 and set a "buy" rating for the company in a research report on Friday, May 22nd. Cantor Fitzgerald reissued an "overweight" rating and set a $112.00 price objective on shares of monday.com in a research note on Monday, August 3rd. Jefferies Financial Group restated a "hold" rating on shares of monday.com in a report on Tuesday, May 12th. Finally, Oppenheimer set a $115.00 target price on shares of monday.com in a research note on Monday, May 11th. Seventeen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, monday.com has a consensus rating of "Moderate Buy" and a consensus target price of $126.78.

monday.com Price Performance

The firm's 50 day moving average price is $80.75 and its 200-day moving average price is $79.61. The stock has a market cap of $4.43 billion, a P/E ratio of 37.64, a P/E/G ratio of 4.66 and a beta of 1.24.

monday.com (NASDAQ:MNDY - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.11 by $0.37. The company had revenue of $364.62 million for the quarter, compared to analysts' expectations of $355.55 million. monday.com had a return on equity of 5.10% and a net margin of 9.17%.monday.com's revenue was up 21.9% compared to the same quarter last year. During the same period last year, the firm posted $1.09 earnings per share. On average, analysts expect that monday.com Ltd. will post 1.59 earnings per share for the current year.

Institutional Investors Weigh In On monday.com

A number of hedge funds have recently added to or reduced their stakes in MNDY. Plato Investment Management Ltd purchased a new position in shares of monday.com in the 2nd quarter worth $432,000. S&CO Inc. purchased a new stake in monday.com during the second quarter valued at $786,000. Fulton Bank N.A. increased its position in monday.com by 5.1% during the second quarter. Fulton Bank N.A. now owns 3,339 shares of the company's stock valued at $242,000 after acquiring an additional 162 shares during the last quarter. Evanson Financial LLC bought a new position in monday.com in the second quarter valued at about $219,000. Finally, AMS Capital Ltda lifted its holdings in monday.com by 144.4% in the first quarter. AMS Capital Ltda now owns 67,172 shares of the company's stock valued at $4,642,000 after acquiring an additional 39,692 shares during the period. 73.70% of the stock is currently owned by hedge funds and other institutional investors.

About monday.com

monday.com is a software-as-a-service (SaaS) company that provides a cloud-based Work Operating System (Work OS) designed to help teams plan, organize and track their work. The platform offers customizable workflows that support project management, task delegation, time tracking and collaboration across departments. monday.com's visual interface enables users to create boards, automations and dashboards to centralize information and streamline processes without requiring extensive coding knowledge.

The company's product portfolio includes monday Work OS, which can be adapted for use cases ranging from marketing campaign management and sales pipelines to software development sprints and human resources onboarding.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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