So, Monday.com. A name that suggests a level of organizational zeal most of us only aspire to on a good Tuesday. The stock, it turns out, had a bit of a wobble in 2025, shedding about 37.3% of its value, and currently sits a considerable distance south of its all-time highs. Now, in the grand scheme of things, stock market fluctuations are about as surprising as finding pigeons in a city park, but it’s worth a peek under the hood to see what rattled this particular enterprise. They provide software to help teams manage tasks, which sounds perfectly sensible, and, like many software companies these days, found itself caught in the crosshairs of the AI narrative.
The question, of course, is whether this is a genuine cause for concern, or simply the market having one of its periodic bouts of existential angst. Let’s have a look.
The Rise of the Machines (and Software’s Worry Thereof)
The prevailing fear, as near as I can figure, is that Artificial Intelligence will allow anyone – and I mean anyone – to build software. Apparently, tools like Claude Code can conjure up functioning programs from mere conversational prompts. It’s a bit like saying you can bake a soufflé just by describing it to a very clever robot. Now, I’m not a coder, and frankly, the idea of writing instructions for a computer makes my brain ache, but the logic is that if everyone can build their own software, then fewer people will need to buy it from companies like Monday.com. A perfectly reasonable concern, you might think.
However, the numbers tell a slightly different story. Last quarter, Monday.com’s revenue actually increased by 26%, and they’ve seen a 37% jump in customers spending over $50,000 a year. Which is a bit like saying that despite the rise of home brewing, people are still buying perfectly good beer. It suggests that while AI might offer some DIY options, it hasn’t quite replaced the need for professional-grade tools.
And, impressively, Monday.com is now profitable, generating positive free cash flow since 2023. They’re also branching out, moving beyond simple task management into areas like marketing and IT support. A bit like a well-adjusted octopus, expanding its reach into new territories.
Should You Buy Monday.com? A Skeptic’s View
After this little dip, Monday.com’s market cap is sitting at around $6.9 billion. That works out to a price-to-free cash flow ratio of about 20, which, when compared to other companies growing at a similar rate, isn’t unreasonable. It’s not a bargain-basement price, mind you, but it’s not as if they’re asking for a king’s ransom.
They’re currently spending a considerable amount on sales and marketing, which is fairly standard for a growing company. The hope, of course, is that as the business matures, they’ll be able to dial back on the marketing spend and let the profits flow a little more freely. It’s a bit like planting a tree – you need to nurture it for a while, but eventually, it should bear fruit.
Now, I’m a naturally skeptical person, so I wouldn’t suggest rushing in headfirst. But if you believe the AI threat to software companies is overblown – and I suspect it may be – then Monday.com might be worth a closer look. Just remember, the stock market is a peculiar beast, and past performance is no guarantee of future results. It’s a bit like predicting the weather – you can make an educated guess, but you’re always likely to be surprised.
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2026-01-15 19:34