Has Wall Street Got Monday.com Completely Wrong?

Summary

Few stocks have taken as brutal a beating from AI disruption fears as Monday.com NASDAQ: MNDY. Its shares have fallen over 70% from last year's high and are currently trading below $80. monday.com Today$72.84 -3.91 (-5.09%) As of 07/21/2026 04:00 PM Eastern52-Week Range$57.50▼$296.93P/E Ratio31.67Price Target$126.04 The fear behind that collapse, and that of many of Monday’s software peers, has been well covered. Investors worry that AI coding tools now make it easy for any company to build its own workflow platform in-house, rather than paying for a software subscription. But as we've seen with other software names in recent months, that fear has rarely matched reality as neatly as the charts would suggest.Get monday.com alerts:Sign Up The market seems to be picking up on this, too, as Monday’s stock has been quietly forming a base since February and has gained 30% since April. In fact, there's a real argument that Monday’s own push into agentic AI could turn this into one of the more attractive entry points in software right now. Why the Core Business Isn’t Actually BrokenLet’s start with the numbers, because that’s where the most obvious discrepancy lies between how the business has been performing and what the stock has been doing. In its most recent report, Monday’s revenue grew 24% year-over-year, while operating profit hit a record. Full-year guidance for revenue and margins was also increased, while the customer data was even more telling, with gross retention hitting record highs, and the company’s enterprise motion gaining fresh momentum. If AI coding tools were hollowing out demand for Monday's platform as the bears have feared, these metrics should all have been trending down. The Agentic AI Pivot Is Well UnderwayWhat makes the bull case so compelling right now is how concrete Monday’s ongoing AI transition actually is. In May, the company rebranded itself as an "AI work platform," which co-CEO Eran Zinman described as “the biggest change in the history ...