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Monday.com shares tumble over 70% as investors fret AI disruption
In its most recent report, Monday.com said revenue rose 24% year over year and operating profit hit a record, despite the stock dropping below $80.
Monday.com has become a high-profile casualty of investor concerns about AI disruption in software, with shares down more than 70% from last year’s high and trading below $80, MarketBeat Ratings notes.
The core fear, echoed across Monday.com’s SaaS peers, is that AI coding tools could make it easier for companies to build workflow platforms in-house instead of paying subscription fees.
However, the company pointed to strength in its latest reporting: revenue increased 24% year over year and operating profit reached a record, while full-year guidance for revenue and margins was raised.
MarketBeat Ratings also highlights Monday.com’s shift toward an AI-focused product approach, including a May rebrand to an “AI work platform” and a new seats plus credits pricing model intended to align revenue with AI-driven value and adoption, with enterprise customers receiving complimentary AI packages.