Morgan Stanley Lowers monday.com Price Target Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy MNDY?
Source: seekingalpha
monday.com Ltd. shares fell 6.52% as it crossed below the 5-day SMA amid broader market weakness, with the Nasdaq-100 down 1.20% and the S&P 500 down 0.62%.
Morgan Stanley lowered its price target for monday.com from $236 to $200, maintaining an Overweight rating while expressing caution ahead of the upcoming Q4 results. The firm expects a ~2% revenue beat but below-consensus FY26 growth guidance of 18.5%. Analyst Josh Baer noted that the company's execution remains solid, although weakness in paid search suggests new sign-ups occurred at the end of the quarter, indicating a potential shift in customer structure towards larger, stickier clients.
The lowered price target reflects a cautious outlook, but if the company's execution stabilizes into Q4, it could support a clearer narrative moving forward, especially with the shift towards multi-product customers enhancing product adoption.
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: 70.980
Low
195.00
Averages
235.58
High
310.00
Current: 70.980
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.
Software Stocks Decline Amid AI Disruption Fears
- Earnings Beat Yet Stock Falls: Monday.com reported a 25% revenue increase to $333.9 million in Q4, surpassing the $329.7 million consensus, yet the stock plummeted 36.7% due to disappointing guidance.
- Slowing Customer Growth: Despite reporting a GAAP operating profit and adjusted EPS of $1.04, down from $1.08, investor concerns about slowing growth among smaller customers raised fears of AI competition, negatively impacting market sentiment.
- Poor Future Outlook: The company anticipates revenue growth of 18%-19% for 2026, totaling between $1.452 billion and $1.462 billion, below the $1.48 billion estimate, with Q1 revenue guidance also falling short of consensus, exacerbating investor anxiety.
- Deteriorating Market Sentiment: As fears of AI competition intensify, Monday.com has seen a significant stock decline over the past six months; despite a substantial drop in valuation, investors require meaningful growth in GAAP profits for recovery.
See More
Monday.com Faces 36.7% Stock Drop Amid AI Disruption Fears
- Significant Stock Drop: Monday.com experienced a 36.7% decline in stock price last month due to fears of AI disrupting enterprise SaaS products, indicating investor concerns about future growth, particularly following the disappointing fourth-quarter earnings report.
- Earnings Report Analysis: Although Monday.com reported a 25% year-over-year revenue increase to $333.9 million, surpassing expectations, its adjusted earnings per share of $1.04 fell from $1.08, highlighting the company's vulnerability under AI competitive pressure.
- Future Growth Outlook: Looking ahead to 2026, Monday.com anticipates revenue growth of only 18%-19%, below the market estimate of $1.48 billion, reflecting a lack of momentum in the face of AI challenges that could impact long-term investment appeal.
- Investor Confidence Shaken: With signs of slowing growth among smaller customers and concerns over AI threats, Monday.com's valuation has significantly decreased, and investors may require substantial growth in GAAP profits to regain confidence in the stock.
See More
Software Sector Faces Disruption Risks
- Disruption Indicators: In a recent podcast, analysts discussed historical disruption cases, highlighting that persistently declining gross margins and customer attrition are key signs of companies facing disruption, which is crucial for investor decision-making.
- Salesforce's Challenges: Salesforce is projected to generate approximately $41 billion in revenue for 2026, yet its annualized AI agent business is only $1.4 billion, and sluggish growth places it at risk of disruption, especially in an increasingly competitive market.
- Market Reaction: While the S&P 500 and NASDAQ saw slight gains last week, the software-as-a-service (SaaS) sector experienced sharp sell-offs, intensifying investor concerns about potential disruptions and reflecting market uncertainty about the industry's future.
- Investor Mindset: Analysts emphasized the importance of maintaining courage amid fear, asserting that investors must possess the ability to act against market trends to navigate volatility and seize potential investment opportunities.
See More
monday.com Faces Securities Law Investigation Following Earnings Guidance Miss
- Guidance Downgrade: On February 9, 2026, monday.com projected FY2026 revenue between $1.452 billion and $1.462 billion, significantly below the previously endorsed $1.5 billion, indicating a lack of confidence in future performance that could shake investor trust.
- Stock Price Volatility: Following the earnings report, monday.com shares plummeted over 20% with trading volumes surging, reflecting market concerns about the company's outlook, which may impact its future financing capabilities and market positioning.
- Management Confidence Erosion: Despite previously expressing confidence in achieving the $1.5 billion revenue target during the November 2025 earnings call, the recent guidance cut and withdrawal of 2027 targets suggest a lack of clarity in the company's long-term strategy, potentially affecting analysts' valuation models.
- Legal Investigation Initiated: Levi & Korsinsky, LLP is investigating potential securities law violations by monday.com, particularly regarding management's forward-looking statements prior to the earnings report; unfavorable findings could expose the company to legal liabilities and financial repercussions.
See More
US Stocks Plunge as Trade Policy Concerns Emerge
- Market Decline: On Monday, the S&P 500 Index fell by 1.04%, the Dow Jones Industrial Average dropped by 1.66%, and the Nasdaq 100 Index decreased by 1.21%, reflecting risk-off sentiment triggered by uncertainty over U.S. trade policy.
- Tariff Increase: President Trump signed an executive order raising global tariffs from 10% to 15%, a move that could curb global economic growth and negatively impact the stock market, particularly as it faces existing pressures.
- AI Risk Impact: A report from Citrini Research detailing potential risks of artificial intelligence on the global economy led to declines in software and payment stocks, with Datadog and Atlassian seeing drops of over 11% and 10%, respectively, indicating market concerns over tech stocks.
- Economic Data Highlights: Despite the stock market downturn, the U.S. January Chicago Fed National Activity Index rose by 0.39 to 0.18, surpassing expectations, suggesting that the economic fundamentals remain strong and may provide support for a future market rebound.
See More
Software Earnings Are Here: A Pivotal Moment for the Industry.
- Software Earnings: Several companies are reporting their software earnings this week, which is significant for the industry.
- Sector Challenges: The software sector has faced difficulties recently, largely due to rising concerns surrounding artificial intelligence.
- Market Impact: The earnings reports may influence market perceptions and investor confidence in the software industry.
- Future Outlook: The results could provide insights into how companies are adapting to the challenges posed by AI advancements.
See More
Software Stocks Decline Amid AI Disruption Fears
- Earnings Beat Yet Stock Falls: Monday.com reported a 25% revenue increase to $333.9 million in Q4, surpassing the $329.7 million consensus, yet the stock plummeted 36.7% due to disappointing guidance.
- Slowing Customer Growth: Despite reporting a GAAP operating profit and adjusted EPS of $1.04, down from $1.08, investor concerns about slowing growth among smaller customers raised fears of AI competition, negatively impacting market sentiment.
- Poor Future Outlook: The company anticipates revenue growth of 18%-19% for 2026, totaling between $1.452 billion and $1.462 billion, below the $1.48 billion estimate, with Q1 revenue guidance also falling short of consensus, exacerbating investor anxiety.
- Deteriorating Market Sentiment: As fears of AI competition intensify, Monday.com has seen a significant stock decline over the past six months; despite a substantial drop in valuation, investors require meaningful growth in GAAP profits for recovery.
See More
Monday.com Faces 36.7% Stock Drop Amid AI Disruption Fears
- Significant Stock Drop: Monday.com experienced a 36.7% decline in stock price last month due to fears of AI disrupting enterprise SaaS products, indicating investor concerns about future growth, particularly following the disappointing fourth-quarter earnings report.
- Earnings Report Analysis: Although Monday.com reported a 25% year-over-year revenue increase to $333.9 million, surpassing expectations, its adjusted earnings per share of $1.04 fell from $1.08, highlighting the company's vulnerability under AI competitive pressure.
- Future Growth Outlook: Looking ahead to 2026, Monday.com anticipates revenue growth of only 18%-19%, below the market estimate of $1.48 billion, reflecting a lack of momentum in the face of AI challenges that could impact long-term investment appeal.
- Investor Confidence Shaken: With signs of slowing growth among smaller customers and concerns over AI threats, Monday.com's valuation has significantly decreased, and investors may require substantial growth in GAAP profits to regain confidence in the stock.
See More
Software Sector Faces Disruption Risks
- Disruption Indicators: In a recent podcast, analysts discussed historical disruption cases, highlighting that persistently declining gross margins and customer attrition are key signs of companies facing disruption, which is crucial for investor decision-making.
- Salesforce's Challenges: Salesforce is projected to generate approximately $41 billion in revenue for 2026, yet its annualized AI agent business is only $1.4 billion, and sluggish growth places it at risk of disruption, especially in an increasingly competitive market.
- Market Reaction: While the S&P 500 and NASDAQ saw slight gains last week, the software-as-a-service (SaaS) sector experienced sharp sell-offs, intensifying investor concerns about potential disruptions and reflecting market uncertainty about the industry's future.
- Investor Mindset: Analysts emphasized the importance of maintaining courage amid fear, asserting that investors must possess the ability to act against market trends to navigate volatility and seize potential investment opportunities.
See More
monday.com Faces Securities Law Investigation Following Earnings Guidance Miss
- Guidance Downgrade: On February 9, 2026, monday.com projected FY2026 revenue between $1.452 billion and $1.462 billion, significantly below the previously endorsed $1.5 billion, indicating a lack of confidence in future performance that could shake investor trust.
- Stock Price Volatility: Following the earnings report, monday.com shares plummeted over 20% with trading volumes surging, reflecting market concerns about the company's outlook, which may impact its future financing capabilities and market positioning.
- Management Confidence Erosion: Despite previously expressing confidence in achieving the $1.5 billion revenue target during the November 2025 earnings call, the recent guidance cut and withdrawal of 2027 targets suggest a lack of clarity in the company's long-term strategy, potentially affecting analysts' valuation models.
- Legal Investigation Initiated: Levi & Korsinsky, LLP is investigating potential securities law violations by monday.com, particularly regarding management's forward-looking statements prior to the earnings report; unfavorable findings could expose the company to legal liabilities and financial repercussions.
See More
US Stocks Plunge as Trade Policy Concerns Emerge
- Market Decline: On Monday, the S&P 500 Index fell by 1.04%, the Dow Jones Industrial Average dropped by 1.66%, and the Nasdaq 100 Index decreased by 1.21%, reflecting risk-off sentiment triggered by uncertainty over U.S. trade policy.
- Tariff Increase: President Trump signed an executive order raising global tariffs from 10% to 15%, a move that could curb global economic growth and negatively impact the stock market, particularly as it faces existing pressures.
- AI Risk Impact: A report from Citrini Research detailing potential risks of artificial intelligence on the global economy led to declines in software and payment stocks, with Datadog and Atlassian seeing drops of over 11% and 10%, respectively, indicating market concerns over tech stocks.
- Economic Data Highlights: Despite the stock market downturn, the U.S. January Chicago Fed National Activity Index rose by 0.39 to 0.18, surpassing expectations, suggesting that the economic fundamentals remain strong and may provide support for a future market rebound.
See More
Software Earnings Are Here: A Pivotal Moment for the Industry.
- Software Earnings: Several companies are reporting their software earnings this week, which is significant for the industry.
- Sector Challenges: The software sector has faced difficulties recently, largely due to rising concerns surrounding artificial intelligence.
- Market Impact: The earnings reports may influence market perceptions and investor confidence in the software industry.
- Future Outlook: The results could provide insights into how companies are adapting to the challenges posed by AI advancements.
See More
