Key Points
Monday.com (NASDAQ: MNDY) has faced challenges this year, with its stock down over 40% in 2026. The software-as-a-service (SaaS) platform has been impacted by a broader industry downturn, prompting investors to sell off shares in February after the company’s Q1 2026 revenue projections slightly missed analyst expectations. Despite ultimately beating those estimates by a significant margin ($342.9 million) in May and raising full-year guidance, the stock remains down more than 70% year-over-year.
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AI Fears Emerge
Monday.com’s recent decline has been influenced by investor concerns that artificial intelligence (AI) could disrupt its workflow automation model. The company’s visually driven platform, which requires no technical expertise to use, is seen as uniquely accessible. While Monday.com has integrated AI tools like AI agents and a coding assistant called Vibe, analysts worry similar tools might render its services obsolete.
Still, the platform reports strong growth, with Q1 revenue rising 24% to $351.3 million. Net dollar retention averaged 110%, indicating revenue growth from existing clients in their second year. Retention among larger clients was even stronger, reaching 114% for teams with over 10 users and 116% for those with annual recurring revenue (ARR) of $50,000+.
For Q2, the company predicts revenue between $338 million and $340 million, representing 18-19% growth. Full-year projections now range from $1.466 billion to $1.474 billion, exceeding its earlier $1.452 billion to $1.462 billion guidance.
Is Monday.com a Buy?
Despite its stock’s steep decline, Monday.com continues delivering solid growth and has shown resilience with its AI-driven offerings, particularly its Vibe tool. At current prices, the stock trades below 3x price-to-sales (P/S) and 19x forward price-to-earnings (P/E) ratios, even as revenue growth is projected to approach 20%. These valuations suggest potential upside relative to peers in the SaaS space.
However, the core investment question remains: Will businesses continue outsourcing workflow software as AI tools improve, or will they develop similar capabilities in-house? While AI has simplified custom solutions, many organizations still prioritize dedicated providers for security, updates, and compliance. Based on these fundamentals, Monday.com remains a compelling buy at today’s discounted valuation.
Should You Buy Monday.com Stock Today?
Before investing, consider this advisory:
The Motley Fool Stock Advisor recently highlighted 10 stocks they believe could deliver exceptional returns. Monday.com wasn’t on the list, but notable recommendations like Netflix (then a young company) in 2004 and Nvidia in 2005 generated returns of ~930% and ~1,294,805% respectively. Stock Advisor’s average return is 929%, outperforming the S&P 500’s 211% average.
While this doesn’t automatically make Monday.com a buy, the platform’s growth trajectory, healthy retentions, and low valuation warrant further scrutiny. Readers should review the full 10-stock list for potential alternatives. Access the list now.
* Stock Advisor returns as of July 12, 2026.
No disclaimer conflicts to declare; recommendations are full disclosure-aligned.
