Latest news with #Monday.comLtd
Forbes
20 hours ago
- Business
- Forbes
Buy, Sell or Hold Monday.com Stock?
Ltd (NASDAQ: MNDY), which provides cloud-based work operating systems for project management, CRM, marketing, and software development, witnessed its shares plummet by 30% over the last five days. This decline occurred despite a positive earnings report, as forward-looking indicators did not align with what investors anticipated. The conservative guidance coupled with concerns regarding web traffic variability due to changes in Google's search algorithms sparked a sentiment-driven sell-off, rather than signaling any substantial deterioration in fundamentals. The $13 billion SaaS company recorded $299 million in revenue (+30% YoY) along with an adjusted EPS of $1.09, both figures comfortably surpassing consensus forecasts. However, the management's conservative outlook for Q3, only minor upgrades for the full-year guidance, and statements regarding uncertainty in search traffic undermined bullish sentiment. Our multi-factor assessment — which evaluates Growth, Profitability, Financial Stability, and Downturn Resilience — indicates that while MNDY remains operationally sound, concerns regarding valuation and volatility continue to be significant. If you're looking for upside with reduced volatility compared to individual stocks, the Trefis High Quality Portfolio offers an alternative, having outperformed the S&P 500 with total returns exceeding 91% since its inception. Additionally, take a look at Ethereum: ETH Price To $10,000? Let's delve into the specifics of each assessed factor. [1] Valuation Looks Very High is trading at a significant premium compared to the S&P 500, with a price-to-sales ratio of 12.8 against 3.2 and a price-to-free cash flow multiple of 252.8, which is over ten times the index's 23.6. For further information, please see: MNDY Valuation Ratios [2] Growth Is Very Strong In the past three years, MNDY's revenue has expanded at an average annual growth rate of 43.1%, significantly outpacing the S&P 500's 5.7%. In the last twelve months, revenue surged by 32% to $1.0 billion from $784 million, compared to a 5.0% increase in the index. For additional details, refer to: MNDY Revenue Comparison [3] Profitability Appears Weak Although reported a modest net income of $53 million over the past year (a margin of 5.1%), its operating income was a negative $6.2 million (a margin of -0.6%) compared to the S&P 500's 18.6%. However, the positive aspect is its strong cash generation, exhibiting $331 million in operating cash flow with a margin of 31.9%, well above the index's 20.3%. For further insights, see: MNDY Operating Income Comparison [4] Financial Stability Looks Very Strong The company's leverage is minimal, with only $123 million in debt and a 0.9% debt-to-equity ratio, compared to the S&P 500's 21.8%. Liquidity is exceptional — cash and equivalents account for 86% of total assets ($1.6 billion out of $1.8 billion), while the index shows only 6.9%. [5] Downturn Resilience Is Very Weak Historically, has been significantly more susceptible to market downturns than the S&P 500. During the inflation crisis of 2022, the stock decreased by 82.8% from its peak of $444.70 in November 2021 to $76.46 a year later, while the index experienced a 25.4% decline during the same period. Unlike the S&P 500, which bounced back within 464 days, MNDY has not yet regained its pre-crisis peak, reaching a high of $327.92 in February 2025 and currently trading at $172. However, the risk is not confined solely to major market crashes. Stocks can decline even during favorable market conditions — think of situations such as earnings reports, business updates, and changes in outlook. To see how the stock has rebounded from sharp declines in the past, read MNDY Dip Buyer Analyses. Looking for Smarter Alternatives? is experiencing rapid growth, boasts strong financial stability, and maintains an impressive cash position — but it also comes with a high price tag and has historically shown vulnerability to market shocks. If you have faith in the long-term perspective, being patient for a more favorable entry point could be beneficial. You might consider exploring the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices)and generated strong returns for its investors. What is the reason behind this? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks has provided an effective way to capitalize on positive market conditions while minimizing losses when markets decline, as explained in RV Portfolio performance metrics.
Al Etihad
6 days ago
- Business
- Al Etihad
Billions wiped out as software sinks on AI disruption fear
12 Aug 2025 22:39 (BLOOMBERG) Growing worries that artificial intelligence tools could soon disrupt the world's biggest software businesses are sparking a selloff across the sector.A 30% plunge in Ltd. shares grabbed investor attention in Europe on Tuesday, with some analysts saying the drop reflected concerns over the long-term competitive threat of AI as much as results that failed to meet higher investor worries fueled big losses across the sector. SAP SE - Europe's biggest company by market value - dropped as much as 7.1% in Frankfurt, erasing almost €22 billion ($26 billion) at the session low. Smaller peers like Sage Group Plc and Dassault Systemes SE also slid, following on from Monday's slide among the likes of Salesforce Inc. and Workday are growing that incumbent software makers may be at risk of heightened competition, if AI tools now allow applications to be made more quickly and at a much lower this month, OpenAI Chief Executive Officer Sam Altman warned that the sector could enter a "fast fashion era very soon' in terms of AI enabling cheaper, rapid production."Software valuations remain under pressure from the 'death of software due to AI' narrative, which likely drives continued volatility in the short term,' RBC Capital Markets analysts led by Matthew Hedberg wrote in a note on is among the weakest performers within tech this year, with shares of Salesforce Inc. down more than 30% and Adobe down by about 25%. A basket of software stocks is trading near the lowest levels since January versus a group of semiconductor worry has also spread to companies that offer research insights and IT consultancy services, such as Gartner Inc, which reduced its full-year outlook last week. While the firm cited factors like tariffs and government budget cuts, analysts said the weak result exacerbated concerns over competition from AI research some see buying opportunities following the rapid price drops. Morgan Stanley analyst Josh Baer raised his rating on to overweight on Tuesday, saying the stock's pullback "more than incorporates' risks of AI disrupting search advertising and performance marketing."Investors are fearing that AI is going to eat software and multiples are going to fall apart,' Jefferies analyst Brent Thill said in a CNBC interview on Monday. "I think the fear is overblown, but nevertheless we are living through a period right now where investors just really don't care about the group.'
San Francisco Chronicle
11-08-2025
- Business
- San Francisco Chronicle
Monday.com: Q2 Earnings Snapshot
TEL AVIV-YAFO, Israel (AP) — TEL AVIV-YAFO, Israel (AP) — Ltd. (MNDY) on Monday reported second-quarter earnings of $1.6 million. The Tel aviv-Yafo, Israel-based company said it had net income of 3 cents per share. Earnings, adjusted for stock option expense and pretax expenses, came to $1.09 per share. The results topped Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 84 cents per share. The project management software developer posted revenue of $299 million in the period, which also topped Street forecasts. Eight analysts surveyed by Zacks expected $293.1 million. For the current quarter ending in September, said it expects revenue in the range of $311 million to $313 million. The company expects full-year revenue in the range of $1.22 billion to $1.23 billion. _____
Washington Post
12-05-2025
- Business
- Washington Post
Monday.com: Q1 Earnings Snapshot
TEL AVIV-YAFO, Israel — TEL AVIV-YAFO, Israel — Ltd. (MNDY) on Monday reported first-quarter net income of $27.4 million. On a per-share basis, the Tel aviv-Yafo, Israel-based company said it had net income of 52 cents. Earnings, adjusted for stock option expense, came to $1.10 per share. The results beat Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 70 cents per share.
Yahoo
02-04-2025
- Business
- Yahoo
Monday.com Ltd. (MNDY) Fell as it Failed to Sustain the Momentum
Sands Capital, an investment management company, released its 'Sands Capital Technology Innovators Fund' Q4 2024 investor letter. A copy of the same can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned 5.5% (net) in the fourth quarter compared to 4.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The fund returned 37.7% over the one year period compared to 31.6 % return for the Index. You can check the fund's top 5 holdings to know more about its best picks for 2024. In its fourth quarter 2024 investor letter, Sands Capital Select Technology Innovators Fund emphasized stocks such as Ltd. (NASDAQ:MNDY). Ltd. (NASDAQ:MNDY) develops software applications and work management tools. The one-month return Ltd. (NASDAQ:MNDY) was -6.43%, and its shares gained 21.72% of their value over the last 52 weeks. On April 1, 2025, Ltd. (NASDAQ:MNDY) stock closed at $262.18 per share with a market capitalization of $13.312 billion. Sands Capital Technology Innovators Fund stated the following regarding Ltd. (NASDAQ:MNDY) in its Q4 2024 investor letter: " Ltd. (NASDAQ:MNDY) shares declined following the release of its third-quarter business results. Weakness in shares of the business can be attributed to momentum from a strong second quarter that did not carry through into the third quarter. Software engineers collaborating on a project while seated in a shared workspace. Ltd. (NASDAQ:MNDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Ltd. (NASDAQ:MNDY) at the end of the fourth quarter compared to 49 in the third quarter. While we acknowledge the potential of Ltd. (NASDAQ:MNDY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Ltd. (NASDAQ:MNDY) in another article, where we shared the list of AI stocks on investors' radar. Artisan Mid Cap Fund ended its investment campaigns in Ltd. (NASDAQ:MNDY) during Q4 2024. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
