Why Monday.com Stock Sank In 2025

• Monday.com banal is falling on with different bundle companies astatine hazard of AI disruption.

• The institution is inactive increasing its customers and gross contempt these fears.

• Shares of Monday.com banal look inexpensive close now.

• 10 stocks we similar amended than Monday.com ›

Shares of Monday.com (NASDAQ: MNDY) slipped 37.3% successful 2025 and are down 70% from all-time highs, according to information from S&P Global Market Intelligence. A bundle supplier that helps teams negociate tasks, Monday.com has suffered on with different bundle stocks owed to a communicative of disruption implicit artificial quality (AI). However, astatine the aforesaid time, the company's gross continues to turn astatine an awesome double-digit rate.

Here's wherefore Monday.com banal fell past year, and whether it is simply a bargain for 2026.

Software stocks crossed the committee suffered successful 2025, chiefly owed to capitalist fears astir AI. New AI tools, specified arsenic Claude Code, let radical to pass with a chatbot to physique bundle tools from scratch, adjacent if they person minimal coding experience. The carnivore thesis for existing bundle providers is that companies volition statesman to physique their ain bundle with these AI tools, starring to a alteration successful request for third-party platforms specified arsenic Monday.com.

This is an absorbing carnivore case, but it's not showing up successful the numbers arsenic of today. Last quarter, Monday.com's gross grew 26% year-over-year, with a 37% maturation successful the full fig of customers spending much than $50,000 annually connected its bundle services. These are the companies supposedly gathering their ain bundle products with AI that volition regenerate Monday.com, but successful reality, they are really increasing their walk with the company.

Monday.com is present profitable, generating affirmative escaped currency travel since 2023. Now, the institution is expanding beyond task absorption for employees to selling solutions, developer support, and IT enactment successful hopes of expanding its addressable market.

After its monolithic drawdown, Monday.com's banal present trades astatine a marketplace headdress of $6.9 billion. That is simply a price-to-free currency travel (P/FCF) of astir 20 erstwhile compared to its trailing escaped currency travel of $343 million, a comparatively debased terms for a institution increasing gross astatine implicit 20% year-over-year.

Plus, contiguous Monday.com is spending hundreds of millions of dollars a twelvemonth connected income and selling successful bid to triumph caller customers. Once the concern begins to mature, it volition beryllium capable to grow its nett margins and turn its escaped currency travel astatine an adjacent faster complaint than gross arsenic selling walk decreases. If you deliberation the AI hazard to bundle stocks is overblown, present could beryllium a bully clip to scoop up immoderate shares of Monday.com banal connected the cheap.