MNDY can sustain growth by moving upmarket while converting workflow automation and AI demand into additional platform revenue.
Core acquisition and expansion are weakening faster than AI can compensate, raising estimate risk and limiting valuation recovery.
Top-funnel pressure, a pivot upmarket that threatens the SMB business, and rising AI competition create risks for FY27 growth.
The stock declined after Cowen's downgrade, which cited worsening paid search/SEO performance and SMBs experimenting with LLM/vibe-coding alternatives.
The company's stock declined as app software was categorized as 'AI losers'.
The stock ripped higher as app software names saw strong performance.
The stock was squeezed higher as AI losers saw a rebound.
The company's stock ripped, likely helped by CRM's 58% premium for BRZE, indicating positive sentiment for app software companies.
The market turned on reports around 9:15am ET that the US and Iran had backed a Qatar/Pakistan compromise proposal, plus a weak pending home sales print that pulled yields lower, with small caps leading (IWM +1.7%). Breadth flipped from yesterday’s narrow b...
The stock benefited from a rotation into app software, which is perceived as an 'AI-loser bounce'.
AI Annual Recurring Revenue (ARR) is scaling quickly but remains too small at approximately 1% of total ARR to offset the deceleration in core growth.
MNDY -4.7%; HUBS -2.2% as Barclays downgraded both: MNDY’s AI ARR is only ~1% of total as growth slows to a 16-17% Q3 guide; at HUBS, customers are cautious and April’s GTM disruption weighs on pipeline through 2H26.
The company’s largest global partner reported a softer 3Q than expected, with new logos pressured by weak outbound marketing ROI, AI search headwinds, and increased competition.
The partner expects 2026 net-new ARR below 2025 and sees renewals getting tougher on pricing.
Net-new customer trends remain challenging despite an improved September and expected benefit from larger renewals in 4Q.
Partner checks indicate lengthening SMB/mid-market sales cycles and continued pressure on funnel creation.
Net Dollar Retention (NDR) is slipping to 109%, with stronger growth increasingly concentrated in customers spending over $100K.
AI products contributed ~17% of 2Q net-new ARR but still represent less than 1% of total ARR, making them too small to offset near-term growth deceleration.
JPM cut estimates and expects further moderation into 2027, leading to a downgrade to Neutral with an $87 price target.
In Tech, it’s Open AI Dev Day and Semis +1% are leading the way higher. Software -1% down early follow through on yesterday’s weakness after a MNDY -2% downgrade at JPM and ahead of MDB’s investor day, the day after losing their CEO.
MNDY: JPM downgrades to Neutral/$87, sees funnel creation + net-new ARR headwinds outweighing cheap valuation
The company's stock declined due to a downgrade from JPM, citing lengthening SMB/mid-market sales cycles, weaker funnel creation, and slipping net dollar retention.
The introduction of ChatGPT Space, a direct competitor in work management, negatively impacted the stock.
MNDY -3.8% (-7.5% at the lows mid-keynote) as JPM downgraded to Neutral: partner checks point to lengthening SMB/mid-market sales cycles and weaker funnel creation, NDR is slipping to 109%, and AI products were ~17% of 2Q net-new ARR but still <1% of total...
NVDA was the standout +1.7% in semis after announced $150B buyback on top of their existing authorization. Software -55bps held in far better than the headline of the day would suggest (META going after enterprise AI with MDB’s -18% CEO) as cyber ripped and...
Third-party data indicated softer SMB and enterprise net adds this quarter.
The stock experienced a notable increase, as it was seen as a beneficiary from the perceived slowdown in AI frontier development and a heightened focus on safety.
The stock experienced weakness across the board, indicating a broad-based decline in the software sector.
The stock, categorized as an AI "loser" in application software, outperformed.
Upmarket demand remains healthy, with customers with 50+ employees growing double digits and CRM/Service seeing strong momentum.
Larger-customer expansion and multiple growth vectors should help offset pressure from the softer downmarket.
The softer 2H outlook was driven by RIF, seat slippage, and weaker downmarket NDR rather than a broad demand deterioration.
Downmarket conditions have remained soft since May, and management does not expect a meaningful recovery near term.
Cantor downgraded the stock to Neutral and cut its price target, stating that the strong 2Q beat, accelerating AI adoption, and enterprise momentum are offset by declining net new ARR and weaker new-product KPIs.
The key debate is whether higher GTM and AI investment can translate into a durable growth reacceleration rather than just near-term expense pressure.
Cantor believes shares need clearer evidence of improving net new ARR and product traction before the multiple can re-rate.
The company's AI product annual recurring revenue (ARR) doubled quarter-over-quarter and contributed 17% of net new ARR, indicating strong growth in its AI offerings.
Customers with over $500K in ARR grew by 68% year-over-year to 114, suggesting continued strengthening of its enterprise market presence.
Remaining Performance Obligations (RPO) grew 34% year-over-year to $937M, indicating future revenue visibility.
Operating margins showed modest improvement.
The company's Q3 guidance was approximately $4M below Street expectations at the midpoint, indicating a weaker near-term outlook.
The full-year 2026 revenue guidance remained unchanged, implying a softer Q4 performance.
The stock showed significant strength.
Wells Fargo is more encouraged by the company's AI strategy and emerging consumption monetization after management demonstrated MNDY Agents, which can automate workflows and interact with enterprise data across multiple frontier models.
AI demand is beginning to build in customer discussions, prompting greater GTM investment and an expanded FDE organization.
Monetization is shifting toward a hybrid model, with new customers purchasing minimum AI-credit bundles.
BTIG believes the company's AI Work Platform and new agent capabilities strengthen its competitive positioning as workflows increasingly overlap with frontier-model tools.
The firm still sees a path to significant AI-credit adoption over several years, indicating long-term potential.
BTIG lowered its price target despite maintaining a Buy rating, indicating some near-term caution.
Near-term revenue expectations are lower as customers evaluate new pricing, renewal pressure rises, and enterprise contracts close with less upside.
BTIG models lower revenue for 2026 and 2027 and remains cautious on second-quarter and future estimates.
The stock was among the 'AI losers' in application software that were hit the hardest.
The stock showed nice outperformance, categorized among the usual 'AI losers' bucket.
The stock showed nice outperformance.
Enterprise additions were stronger quarter-over-quarter.
Small and medium-sized business (SMB) data decelerated in Q2.
The stock underperformed, indicating that AI disruptors are struggling.
AI disruptors back to underperforming: WDAY/HUBS/MNDY/ACN/CTSH/TEAM all down 3-4%
Wells Fargo’s partner checks indicate Q2 performed better than expected, driven by stronger renewals and improving execution.
The partner noted that a high percentage of added ARR came from renewals (low 90s), indicating strong customer retention.
Customers are increasingly purchasing AI credits alongside broader platform adoption, and there is growing interest in Monday Agents, viewing AI as an incremental monetization opportunity over time as usage-based pricing rolls out.
Wells Fargo reported positive feedback after speaking with the company's largest global partner, who indicated that Q2 performed better than expected due to stronger renewals and improved execution.
The partner noted that a high percentage of added ARR came from renewals, with customers increasingly purchasing AI credits alongside broader platform adoption.
New logo activity remains softer.
The stock struggled to attract buyers, consistent with the broader application software sector.
The company's stock declined as app software continues to receive little attention, and Mythos/Fable coding capabilities show ongoing improvements.
The stock was an underperformer, categorized as part of the usual AI disruption crew.
The stock showed strength as a laggard, indicating a broad-based rally in software.
The company is struggling to attract bids due to persistent AI concerns.
Lots of questions around some of the big moves here, but not a lot of stock specific answers and more just short covering/factor rotation on the semis down day. Some of the big app sw laggards caught a bid with NOW +9%, MDNY +8.5%. Never got a great answer...
The stock experienced follow-through to the downside, confirming that misses in the internet and software sectors are seeing continued negative follow-through.
HUBS -6%/MNDY -6% with follow through to the downside, confirming misses are seeing continued neg follow through in internet and sw
The company reported a strong first quarter of 2026, with upside across revenue, EBIT, FCF, and billings compared to Street expectations.
The topline beat of 3.6% accelerated from the previous quarter and was above the 4Q average beat.
The FY26 revenue guide was raised to $1.466–$1.474 billion, representing 19.0–19.6% year-over-year growth, with EBIT and FCF also raised.
The 2Q26 EBIT guide of $46–$48 million was well above Street expectations.
Key performance indicators were solid, including flat NDR, increased $100K+ customer adds, a growing workOS ARR mix, and strong RPO/cRPO growth.
The 2Q26 revenue guide was more mixed at $345–$356 million, with the midpoint at 18.5% year-over-year growth, compared to Street expectations of $354.2 million.
SEO traffic improved month-over-month throughout the quarter and grew year-over-year in March.
MNDY (PT to $85) and ASAN (PT to $7) are also cut to Neutral as the collaboration space faces greater scrutiny on seat expansion, PLG headwinds, and slowing growth.
The company experienced a deceleration in Q1.
Piper Sandler downgraded the company to Neutral, citing greater scrutiny on seat expansion, product-led growth headwinds, and slowing growth in the collaboration space.
The stock performed well, indicating it was not broadly affected by the AI disruption impacting other software companies.
The company's financial miss contributed to a bifurcation in the software sector, separating it from companies with stronger performance.
The stock continued to decline following its previous disappointing results, which raised concerns about AI and top-of-funnel metrics.
After MNDY’s miss, then DDOG’s beat and now NET (assuming it holds), we’re beginning to see a bifurcation in software after consumption all got lumped in with the bad stuff over the last couple of weeks.
The company issued a very weak guide, fueling AI obsolescence fears.
Revenue growth is decelerating sharply, from 27% in FY25 to approximately 20% in FY26 guidance.
Management completely withdrew its $1.8 billion FY27 targets, a surprising reversal from confident messaging just months prior.
The underlying business is bifurcating, with enterprise growth (34% for $50K+ ARR) unable to offset severe deterioration in the SMB/self-serve base.
Net new ARR from sub-$50K customers declined by 25%, and net new ARR from sub-10-user customers collapsed by 39%.
Margins are compressing (from 14% to 11-12%) even as growth slows, with the company investing heavily in AI and sales hiring with uncertain payoff.
Research through 2026-11-03 · 2026-02-09 to 2026-11-03 · 38 source reports.
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Research through 2026-11-03. Artifact validity does not establish factual accuracy or research freshness.