Monday.com: A Week of Disquiet

by

The chronicles of the market this week have recorded a notable decline in the fortunes of Monday.com (MNDY +0.63%), a company whose very name suggests the relentless march of time and the burdens it imposes. From the closing of trade last Friday until the bell sounded on February 12th, its shares suffered a diminution of value, falling by a quarter – a loss that, while not catastrophic in the grand scheme of things, serves as a reminder of the precariousness of even the most promising enterprises.

The company, true to its naming convention, delivered its earnings report early on Monday morning. The figures themselves were, by most accounts, acceptable – even exceeding the modest expectations of the assembled analysts. Yet, a shadow fell upon the proceedings, for with the announcement of these results came a retraction of the company’s previously stated guidance for the coming fiscal year. It is in such moments, when promises are broken and expectations dashed, that the true character of a business is revealed.

Loading widget...

A Quarter’s Gain, a Future Uncertain

Let us examine the particulars. Monday.com’s revenue increased by 25% over the year prior, reaching a sum of $333.9 million. Adjusted earnings, while diminished from $1.08 to $1.04 per share, still exceeded the projections of those who concern themselves with such matters. The consensus on Wall Street had anticipated a figure closer to $0.92 per share, on revenue of approximately $329.5 million. These numbers, viewed in isolation, would suggest a company progressing steadily on its course.

Indeed, the results surpassed the lower bounds of the company’s own initial forecasts, which had predicted a more restrained operating income. Yet, it was the subsequent withdrawal of the long-term guidance for 2027 that provoked the most significant reaction. The stated reasons – currency fluctuations and the ever-shifting landscape of artificial intelligence – were, to some, insufficient to justify such a decisive act. It is a curious thing, how readily investors attribute misfortune to external forces, rather than acknowledging the inherent uncertainties of the market.

Many interpreted this retraction as a tacit admission that the rising tide of AI agents posed a threat to Monday.com’s dominance in the realms of project management and online collaboration. The stock price responded accordingly, plummeting by over 20% on the day of the announcement and remaining subdued for the remainder of the week. It is a sobering reminder that in the modern economy, perception often holds more sway than reality.

The Art of Modesty, or a Calculated Retreat?

It is worth noting that Monday.com has, in the past, demonstrated a tendency to underpromise and overdeliver. The company’s management has consistently set modest targets, only to surpass them with stronger-than-anticipated results. To revoke long-term growth goals would, therefore, represent a departure from this established pattern, a move that some might view as either extraordinarily cautious or disingenuous.

Nevertheless, the company projects revenue growth of approximately 18% and a 28% increase in adjusted operating profits for the year 2026 – ambitious targets, to be sure, but not entirely unrealistic. Moreover, Monday.com is actively developing its own AI agent platform, allowing clients to integrate multi-step AI tools into their Work OS applications. It remains to be seen whether this will be sufficient to counter the challenges posed by its competitors, but the company is, at least, attempting to adapt to the changing landscape.

The ensuing decline in the stock price, in my estimation, was an overreaction, fueled by the anxieties and uncertainties that plague the modern investor. For those who do not yet hold shares in Monday.com, this may present a favorable opportunity to enter the market. But one must always remember that the market is a fickle mistress, and even the most promising enterprises are subject to the vagaries of fortune.

Read More

2026-02-13 07:02