monday.com Ltd. (MNDY) Is Part Of The 'Enterprise Software Revulsion,' Says Jim Cramer
monday.com Ltd. (NASDAQ:MNDY) is an Israeli software company that develops and provides enterprise-focused products. Its shares have lost 22.8% year-to-date on the back of a stunning 29.8% drop in August, which underscores the brutal sentiment surrounding enterprise software in the age of AI. monday.com Ltd. (NASDAQ:MNDY) earnings were a negative catalyst, as even though the firm beat analyst and revenue estimates, the fact that its Q3 midpoint revenue guidance of $312 million missed analyst estimates of $313 million along with a conservative guidance hike and a weak Q2 beat were devastating for the shares. Here is what Cramer said about monday.com Ltd. (NASDAQ:MNDY):
'What I have here in my hand, Josh Baer . . .who upgrades, Morgan Stanley upgrades after, brutal, look at that, that's actually a decline. Now, why was Monday down? Monday is a company that does work processes. . . it's like a junior ServiceNow if you want to. Now it happened to have the misfortune of reporting on the same day that Ben Reitzes introduced the AI eats software, now actually a year and a half ago he actually coined that term so I don't know why people are thinking that he just did it. But this is all part of this, enterprise software revulsion. We don't want enterprise software, we want semiconductors. . .and I think that people should recognize that these companies are all being viewed as, let's say carrion, because what's happened is this that you can develop your own stuff that is better.
Copyright: dolgachov / 123RF Stock Photo
'Look I just got to tell you I think that all these stocks are going to be shrinking in price-to-earnings multiples. You shouldn't be thinking about misses.'
While we acknowledge the potential of MNDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
These 2 FTSE stocks could benefit from the growth of AI and the demand for new data centres
In my opinion, there are two FTSE stocks — Segro (LSE:SGRO) and Tritax Big Box REIT (LSE:BBOX) — that look set to gain from the anticipated explosion in the demand for data centres. According to McKinsey & Company, by 2030, $7trn will need to be spent globally on building the physical infrastructure necessary to house the servers and other hardware required to run artificial intelligence (AI) applications. Closer to home, Barbour ABI has found nearly 100 live UK planning applications for such properties. And reflecting their energy intensity, Mordor Intelligence reckons the capacity of domestic data centres will grow from 2,590 MW in 2025 to 4,750 MW by 2030. That's equivalent to an average annual increase of 12.9%. The country's number one As the UK's largest real estate investment trust (REIT), Segro already has a significant foothold in the market. It owns Slough Trading Estate, Europe's largest business park and home to the continent's biggest cluster of data centres. It also leases other warehouses to companies operating in the sector. Its tenants include Equinix and Digital Realty Trust, two of the industry's largest players. But its share price has disappointed recently — it's down 28% since August 2024. And the commercial property market can be volatile. However, its balance sheet is strong — its loan-to-value was 31% at 30 June. Also, 73% of its lettable area is located in seven countries in continental Europe, which provides it with a certain degree of diversification. Another option Tritax Big Box REIT, the UK's largest owner of logistics facilities, now has two data centres in its portfolio and has announced plans to build a new one near Heathrow airport. It anticipates spending £200m on similar properties in 2025 and £100m-£200m annually thereafter. It estimates the annual rental yield will be 9%-11%. Not surprisingly, the trust views the sector as one of its key growth drivers. As part of its expansion plans, Tritax has made an offer to buy Warehouse REIT. If the deal is successful, it will create a combined £7.4bn property portfolio. The takeover target has 409 tenants at 60 sites in England and Scotland. Immediate cost savings of £5.5m a year are expected. The proposed merger reflects a trend in the investment trust industry where stock market valuations are often lower than the value of the underlying assets. This apparent lack of appreciation from investors has frustrated directors and shareholders alike. Tritax presently trades at a 28% discount. Warehouse is valued at 11% less than its book value. Good for income One of the principal attractions of REITs is that to qualify for certain tax exemptions they must return at least 90% of rental profits to shareholders. This means they usually offer generous yields. For example, based on dividends paid over the past 12 months, Tritax is presently (15 August) offering a return of 5.6%. For comparison, Segro's is 4.6%. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. However, the trust's dividend could come under pressure if interest rates remain at historically high levels. And possible vacancies remain an ever-present threat. But like Segro, I think Tritax has exposure to a sector that's going to see significant growth over the next decade or so. Those that agree with me could consider adding either of them to their portfolios. The post These 2 FTSE stocks could benefit from the growth of AI and the demand for new data centres appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Beard has no position in any of the shares mentioned. The Motley Fool UK has recommended Segro Plc, Tritax Big Box REIT Plc, and Warehouse REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Business Insider
18 minutes ago
- Business Insider
CoreWeave (CRWV) Insiders Sell over $1B Worth of Shares as IPO Lock-Up Period Ends
CoreWeave (CRWV) insiders began selling shares today after the AI data center company's IPO lock-up period expired. As a result, this triggered more than $1 billion in block trades that were organized by Morgan Stanley (MS), JPMorgan Chase (JPM), and Goldman Sachs (GS). Among those selling was board director Jack Cogen, who sold nearly $300 million worth of stock. Interestingly, even though CoreWeave's stock had plunged by 35% in the previous two days due to disappointing second-quarter results, shares stabilized around the $100 level to close slightly up on the day. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The spike in trading activity happened because about 84% of CoreWeave's Class A shares became available for the first time since its IPO in March. According to the Financial Times, which cited sources close to the matter, banks scrambled on Thursday evening to arrange block trades as large as six to eight million shares. For context, block trades like these allow large investors to sell shares quietly, often at a discount, without overwhelming the market. Nevertheless, while CoreWeave has benefited from the AI infrastructure boom, concerns about its financial health are growing. Indeed, the company reported rising losses and surging operating expenses, which hit $1.2 billion in Q2 – almost four times higher than a year ago. On top of that, CoreWeave is facing investor pushback over its proposed $9 billion acquisition of Core Scientific (CORZ), as some shareholders of the target company have threatened to vote against it unless better terms are offered. It also doesn't help that, as of Thursday, 46% of CoreWeave's tradable shares were being shorted, thereby indicating that many investors are betting that the stock will continue to fall. Is CRWV a Good Stock to Buy? Turning to Wall Street, analysts have a Hold consensus rating on CRWV stock based on six Buys, 16 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $115.29 per share implies 15.3% upside potential.
Yahoo
an hour ago
- Yahoo
High Yield and Low Stress: 2 Dividend ETFs That Are Built for Passive Income
Key Points Statistical evidence supports the idea that these two ETFs can simultaneously grow capital and generate income. Maximum monthly drawdowns are less than the benchmark's performance, and so is the risk as defined by standard deviation. These ETFs do relatively best when benchmark indexes are highly volatile but still make money in bull markets. 10 stocks we like better than JPMorgan Equity Premium Income ETF › The JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) have garnered significant investor attention, in part due to their trailing-12-month dividend yields of 8.2% and 11.2%, respectively. Moreover, they offer monthly income, making them a favorite among passive income investors. As such, it would be interesting to share some modeling of their performance to see if they do offer investors a way to a relatively low-volatility strategy that practically guarantees a monthly income. (Keep in mind dividends can always be cut.) Introducing two JPMorgan ETFs The first thing to understand about these two exchange-traded funds is that they are not tailored to invest in dividend stocks. Instead, they both follow the same strategy of investing up to 80% of net assets in equities (stocks), with the only difference being that the Equity Premium ETF focuses on S&P 500 stocks while the Nasdaq Equity Premium ETF focuses on stocks in the Nasdaq-100. As noted above, the stocks are not explicitly selected for their dividend yield, an essential point because high-yield equity-focused ETFs often involve concentrating holdings in sectors with high yields. The remaining net assets, up to 20%, are invested in equity-linked notes (ELNs) that follow a strategy of selling call options on the indexes that the two ETFs benchmark -- S&P 500 and Nasdaq-100, respectively. A call option is the right to buy shares of the index at a specified price (the strike price) and is bought by bullish investors. The seller of the call options (in this case the ETF) receives a premium from the buyer. However, if the index increases significantly, the option is exercised, and the ELN typically incurs a loss. Conversely, when the index experiences a small gain, stays flat, or loses value, the option isn't exercised. The idea is that an anticipated net profit in premiums collected from the ELNs, combined with some dividend income from stock holdings, will generate sufficient income for distributions to be paid to shareholders under any condition, particularly in the event of a substantial increase in the index. And note that the upside is limited (gains less than the market), but the downside is also restricted. This table lays out how the portions of the ETFs will perform based on how the underlying index performs in a month. Monthly Index Performance Strong Gain Moderate Gain Moderate Loss Strong Loss Equities (At least 80% of the ETF assets) Strong Gain Gain Loss Strong Loss ELNs (Up to 20% of the ETF's assets) Loss Profit Profit Profit Overall Gain, but less than the market Gain, but less than the market Slight profit/slight loss Loss, but less than the market Author's analysis. What the ETFs need to do to demonstrate they work Before I throw charts at you, it's worth noting that the proof of the strategy working includes: The ETF should have a lower volatility than the index (measured here by the standard deviation of monthly returns). The ETFs should have relatively low maximum monthly drawdowns because passive investors usually do not want to lose a significant amount in any one month. The strategy should demonstrate a high coefficient of determination, or R^2, indicating that the independent variable (in this case, the benchmark index) is primarily responsible for determining the outcome. Performance consistent with the outcomes outlined in the table above. That said, here are the charts comparing the monthly index performance to the ETF's performance. Both sets of data include reinvestment of dividends. First, here's the JPMorgan Equity Premium Income ETF. And now the JPMorgan Nasdaq Equity Premium Income ETF. A few conclusions can be drawn from the data, along with some additional calculations. The monthly standard deviation of the S&P 500 over the period is 4.7%, compared to 3.1% for JEPI, indicating lower volatility returns. The monthly standard deviation of the Nasdaq-100 over the period is 5.7%, compared to 4.2% for JEPQ, indicating lower volatility returns. Both ETFs exhibit high R^2 values, indicating a consistency of outcome from the strategy. The three most significant monthly drawdowns for JEPI are -6.4%, -4.2%, and -4.1%. The three most significant monthly drawdowns for JEPQ are -8.7%, -6.8%, and -6.6%. In general, the strategy is effective, generating a collection of positive returns when the indices report moderate gains and losses. The downside is limited compared to the index when the market declines significantly, and the upside is limited when the indexes perform well. What it means to passive investors Both indices have performed very well over the periods, with an average monthly gain of 1.5% on the S&P 500 and 1.8% on the Nasdaq; therefore, the ETFs have understandably underperformed. However, there's no guarantee that these conditions will continue, and these ETFs have demonstrated lower volatility returns while maintaining substantial dividends for those seeking monthly income. As such, they are excellent options for those seeking to generate passive income across a range of market conditions. Should you invest $1,000 in JPMorgan Equity Premium Income ETF right now? Before you buy stock in JPMorgan Equity Premium Income ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and JPMorgan Equity Premium Income ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy. High Yield and Low Stress: 2 Dividend ETFs That Are Built for Passive Income was originally published by The Motley Fool
