Core Viewpoint - Monday.com experienced a significant 25% drop in stock price despite reporting better-than-expected earnings, primarily due to disappointing guidance for the next fiscal year [1][4]. Financial Performance - Revenue for Monday.com increased by 25% year over year, reaching $333.9 million, while adjusted earnings per diluted share decreased from $1.08 to $1.04, surpassing Wall Street's expectations of $0.92 per share and revenue of approximately $329.5 million [2][3]. - The results exceeded the midpoints of the company's guidance ranges, which targeted revenue around $329 million and weaker operating income [3]. Guidance and Market Reaction - Management withdrew its existing 2027 guidance, citing currency exchange headwinds and the evolving AI landscape, which led investors to perceive this as a sign of potential business loss to AI competitors [4]. - Following the guidance withdrawal, the stock closed 20.1% lower on that day and maintained a lower level for the remainder of the week [4]. Future Projections - Despite the withdrawal of long-term growth goals, management projects approximately 18% revenue growth and 28% higher adjusted operating profits by 2026, indicating ambitious growth targets [6]. - The company is proactively addressing potential AI challenges by offering its own AI agent platform, which allows clients to integrate multi-step AI tools into their Work OS applications, suggesting that AI could present more opportunities than threats [7].

Core Viewpoint - Monday.com Ltd. (MNDY) is facing a reset in growth expectations, with analysts lowering their price targets ahead of earnings due to weak guidance and concerns about AI disruption in traditional software models [1][2]. Group 1: Analyst Ratings and Price Targets - Canaccord lowered its price target on MNDY to $190 from $230 while maintaining a Buy rating, indicating a cautious approach ahead of earnings [1]. - Baird also reduced its price target for MNDY to $175 from $210, keeping an Outperform rating, reflecting a reset of expectations prior to the earnings report [2]. Group 2: Earnings Guidance and Market Reaction - MNDY's shares dropped approximately 21% following the release of weak guidance, with projected revenue for the upcoming quarter falling short of analyst expectations [2]. - The company projected annual sales between $1.452 billion and $1.462 billion, which is below the consensus projection of $1.48 billion [2]. Group 3: Company Overview - Monday.com Ltd. is an Israeli cloud-based work operating system that offers customizable project and workflow management, collaboration, and productivity software, enhanced by AI tools [3].

Core Viewpoint - monday.com Ltd. is facing significant challenges due to persistent weakness in its "no-touch" performance marketing channel and rising costs associated with AI investments, which have been reflected in its reduced 2026 guidance without prior disclosure of these headwinds [1] Group 1: Financial Guidance and Performance - The company disclosed two main headwinds in its 2026 guidance: ongoing weakness in the no-touch performance marketing channel and a foreign exchange drag of 100–200 basis points due to the appreciation of the Israeli shekel [1] - CFO Eliran Glazer indicated that the 2026 guidance does not anticipate any recovery in performance marketing or top-of-funnel activity, stating it is based on current conditions [1] - The stock experienced a decline of 13–14% on February 9, 2026, contributing to an overall drop of approximately 70% from its 52-week highs [1] Group 2: No-Touch Channel Concerns - The no-touch SMB channel has been a recurring issue, with management previously attributing revenue headwinds to temporary web-traffic softness from Google search algorithm changes, leading to a 26% stock drop in Q2 FY2025 [1] - In Q3 FY2025, a similar guidance miss resulted in a 19% decline in stock value, indicating that the no-touch weakness is now viewed as a structural issue rather than a temporary disruption [1] - Management's acknowledgment of the no-touch channel's persistent weakness raises questions about when they first recognized this shift and whether prior disclosures adequately reflected this evolution [1] Group 3: AI Investment and Profitability - monday.com is increasing its investment in AI products, including Monday Vibe, Monday Sidekick, and Monday Agents, which are expected to require additional spending [1] - The company has guided for a decline in gross margins from 90% to the mid-to-high 80s in FY2026, partly due to AI infrastructure costs [1] - R&D spending increased from 17% to 19% of revenue in FY2025, with management forecasting mid-teens percentage headcount growth in FY2026, primarily in sales and R&D [1] - The early-stage revenue contribution from AI products, such as Monday Vibe reaching $1 million in ARR, represents a small fraction of the company's total annual revenue of $1.2 billion [1]

Core Insights - monday.com Ltd. (NASDAQ:MNDY) is recognized as one of the 10 trending AI stocks, with analysts maintaining a positive outlook despite a reduced price target [1] - DA Davidson analyst Lucky Schreiner has lowered the price target for MNDY from $250.00 to $150.00 while keeping a "Buy" rating, highlighting a disconnect between market pessimism and strong customer satisfaction [1][2] - The firm is adjusting its FY26 estimates due to longer sales cycles and less favorable customer feedback regarding new products, although core product satisfaction remains high [2] Company Performance - Shares of monday.com have declined by 34% year-to-date, driven by concerns that the company may not experience future growth [3] - Despite the decline, the analyst views the current situation as a "straightforward BUY," indicating confidence in the company's potential [3] Product and Market Position - monday.com develops cloud-based software applications for work management, offering a Work OS that facilitates the creation of management tools [3] - Customer interest in building custom solutions as alternatives to monday.com's core product is low, suggesting strong loyalty to the existing offerings [2]

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Core Viewpoint - monday.com Ltd. is facing significant challenges, including a decline in its performance marketing channel, foreign exchange headwinds, and increased investment in AI products, leading to a downward revision of its growth guidance from 27% to 18-19% for FY2026 [2][4]. Financial Performance and Guidance - On February 9, 2026, monday.com disclosed that its 2026 guidance incorporates persistent weakness in its "no-touch" performance marketing channel and a foreign exchange drag of 100-200 basis points due to the appreciation of the Israeli shekel [2]. - The company does not anticipate a rebound in performance marketing or top-of-funnel activity, indicating a structural rather than temporary issue with the no-touch channel [2]. - The stock experienced a decline of approximately 70% from its 52-week highs, falling 13-14% on February 9, 2026, following the earnings call [4]. Investment in AI and Cost Implications - monday.com is increasing its investment in AI products, which includes Monday Vibe, Monday Sidekick, and Monday Agents, leading to a projected decline in gross margins from 90% to the mid-to-high 80s in FY2026 due to AI infrastructure costs [3]. - Research and Development (R&D) spending rose from 17% to 19% of revenue in FY2025, with management guiding for mid-teens percentage headcount growth in FY2026, primarily in sales and R&D [3]. Market Reactions and Management's Communication - The combination of deteriorating no-touch channels, foreign exchange headwinds, rising AI investment costs, and the withdrawal of 2027 financial targets has raised questions among investors regarding the timing of management's recognition of these challenges [4]. - Investors are scrutinizing whether management adequately communicated the shift from temporary disruptions to persistent headwinds earlier than disclosed [2][4].

Core Viewpoint - monday.com Ltd. (MNDY) reported Q4 results that led to a significant stock decline of -23%, indicating market concerns over slowing growth [1] Financial Performance - The report highlighted several red flags, suggesting that the company's growth story is clearly slowing down [1] Market Reaction - The stock's sharp decline reflects investor apprehension regarding the company's future prospects and financial health [1]

Upgrades - Raymond James upgraded Take-Two (TTWO) to Strong Buy from Outperform with an unchanged price target of $285, viewing the recent selloff as overdone and presenting a more attractive risk/reward scenario for the company [2] - Daiwa upgraded Palantir (PLTR) to Buy from Neutral with a price target of $180, down from $200, citing a positive impression from the earnings release [2] - Gordon Haskett upgraded Booking Holdings (BKNG) to Buy from Hold with a price target of $5,440, believing that investors have overreacted to AI-driven competitive concerns and have discounted Booking's operational advantages [3] - Oppenheimer upgraded Unity (U) to Outperform from Perform with a price target of $38, arguing that fears regarding competition from "world models" like Google's Project Genie are misplaced and overlook Unity's unique role in development [4] - Arete upgraded Snap (SNAP) to Buy from Neutral with a price target of $7.30, noting a shift in the company's sales growth from a "sub-scale" advertising business to higher margin, recurring subscription income [5] Downgrades - HSBC downgraded Estee Lauder (EL) to Hold from Buy with a price target of $106, stating that Estee's "modest" organic sales upgrade in the quarter underwhelmed investors relative to expectations [6] - Citi downgraded Under Armour (UAA) to Sell from Neutral with an unchanged price target of $6.20, indicating that the company's turnaround in North America is facing "several pressures" in fiscal 2026 [6] - Raymond James downgraded Wingstop (WING) to Outperform from Strong Buy with an unchanged price target of $325, expressing caution regarding Wingstop's near-term sales trends [6] - Truist downgraded Texas Roadhouse (TXRH) to Hold from Buy with a price target of $188, down from $206, believing that beef price inflation will persist at least through 2027, limiting multiple expansion and pressuring margins and earnings estimates [6] - Loop Capital downgraded Monday.com (MNDY) to Hold from Buy with a price target of $80, down from $195, citing a "fine, but not great" quarter amid moderating upmarket momentum and slower adoption of newer products [6] - Baird also downgraded Monday.com to Neutral from Outperform with a price target of $90, down from $175 [6]

Core Insights - Monday.com reported better-than-expected fourth-quarter earnings with a revenue growth of 25% year-on-year to $333.88 million, surpassing the analyst consensus estimate of $329.64 million. The adjusted EPS for the quarter was $1.04, exceeding the consensus estimate of 92 cents [1][2]. Financial Performance - The company achieved a revenue growth of 27% in 2025, with an adjusted operating margin of 14%. This growth was attributed to disciplined execution, product lineup expansion, and strong adoption of AI offerings [2]. - For the fiscal first quarter of 2026, Monday.com expects revenue guidance of $338.00 million to $340.00 million, slightly below the analyst consensus estimate of $342.97 million. The adjusted operating margin outlook is projected to be between 11% and 12% [3]. - The 2026 revenue guidance is set at $1.452 billion to $1.462 billion, again below the analyst consensus estimate of $1.477 billion, with an adjusted operating margin outlook of 11% to 12% [3]. Market Reaction - Following the earnings announcement, Monday.com shares fell by 1.3% to $76.60 in pre-market trading [3]. - Analysts have adjusted their price targets for Monday.com in response to the earnings report [4].

Core Viewpoint - Monday.com (NASDAQ:MNDY) is facing significant challenges despite a strong fourth-quarter performance, with a notable drop in stock price following a weaker-than-expected revenue outlook for 2026 [2][5][6] Financial Performance - The company reported adjusted earnings of $1.04 per share for the fourth quarter, exceeding expectations of 92 cents [3] - Revenue for the fourth quarter increased by nearly 25% to $333.88 million, surpassing forecasts of $329.7 million [3][5] - The non-GAAP operating margin decreased to 12.5%, and the free cash flow margin dropped to 17.0%, raising concerns about slowing growth and margin pressure [3] Stock Performance and Market Reaction - Following the release of its weaker revenue guidance for 2026, Monday.com's stock dropped over 20% [2][6] - The stock experienced a significant decline of over 19% due to concerns about AI's impact on the software industry and disappointing revenue projections for the current quarter [4] - Oppenheimer set a price target of $130 for MNDY, indicating a potential increase of about 70.09% from its current price of $76.43 [1][6] Future Outlook - Monday.com projected its 2026 revenue between $1.45 billion and $1.46 billion, which is below analysts' average estimate of $1.48 billion [2] - For the current quarter, the company projected revenue between $338 million and $340 million, falling short of the $343 million anticipated by analysts [4]