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MNDY Stock Slumps As AI Pivot Collides With Softer Outlook

JACK KELLOGG•UPDATED AUG. 24, 2026, 3:02 PM ET
Reviewed by Tim Sykesand Fact-checked by Ellis Hobbs

monday.com Ltd. jumps as strong earnings and upbeat guidance lift investor confidence, and stocks have been trading up by 4.54 percent

Key Takeaways For Active Traders

  • Q2 2026 revenue jumped 22% year over year to $364.6M, topping estimates and showing solid demand across monday.com’s work-management platform.
  • Non-GAAP EPS of $1.48 crushed the $1.11 consensus, giving MNDY its strongest profitability profile to date.
  • Management is restructuring around its AI Work Platform, cutting roughly 20% of staff as AI-related ARR doubled and hit 17% of net new ARR.
  • Despite the beat, Q3 revenue guidance of $368M–$370M trailed the Street, and MNDY shares dropped about 9%–10% intraday and sit roughly 42% lower year to date.
  • Wall Street turned cautious: Cantor downgraded to Neutral, while Wells Fargo, Citi, and Jefferies trimmed or tweaked price targets but kept more constructive ratings on monday.com.

Candlestick Chart

Live Update At 15:02:06 EDT: On Monday, August 24, 2026 monday.com Ltd. stock [NASDAQ: MNDY] is trending up by 4.54%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

For traders, MNDY is acting like a textbook “good news, bad reaction” setup. On the surface, monday.com just printed one of its strongest quarters. Q2 2026 revenue hit $364.6M, up 22% from a year earlier and ahead of the $355.5M consensus. Non-GAAP EPS landed at $1.48 versus $1.11 expected, showing that the company is finally scaling profit, not just chasing growth.

Under the hood, MNDY’s balance sheet looks sturdy. monday.com ended 2025 with $1.67B in cash and short-term investments against $143M in long-term debt and $25.8M of current debt, plus over $1.07B in working capital. That gives the company plenty of fuel for its AI push and its recent $870M share repurchase program.

More Breaking News

On the chart, MNDY has been grinding back from the lows but is still in a longer-term downtrend. The stock closed at $94.85 after bouncing from a recent dip near $80, with intraday action today tight between roughly $92 and $95. That tells traders the panic selling has cooled, but big money is still debating the next leg.

Why Traders Are Watching MNDY After Earnings

MNDY’s Q2 print is the kind of mixed story that active traders love. monday.com crushed expectations, yet the stock got hit hard. That disconnect often creates high-volatility opportunities, both long and short, for disciplined trading.

Fundamentally, the quarter checked a lot of bullish boxes. monday.com delivered 22% revenue growth, record non-GAAP operating income, and a growing base of large customers. AI-related annual recurring revenue doubled sequentially and reached 17% of net new ARR. For a software name trying to rebrand around an AI Work Platform, that traction matters. It says customers are at least starting to pay for the new tools, not just kicking the tires.

But the market traded MNDY on the future, not the past. Management guided Q3 revenue to $368M–$370M, a touch below the $372.85M Wall Street expected. That is still solid growth, yet not the “hyper-growth” profile many AI-chasing traders want to see. At the same time, monday.com is cutting roughly 20% of its workforce and reshaping the org chart around AI agents. Restructurings like this add execution risk, and traders hate uncertainty.

Analysts reflected this split view. Cantor Fitzgerald downgraded MNDY to Neutral and cut its target to $90, pointing to slowing net new ARR and weaker new-product KPIs. Citi lowered its target from $154 to $132 but kept a Buy on monday.com, while Wells Fargo trimmed to $120 and stayed Overweight, arguing the reset may actually de-risk the name versus other SaaS peers. Jefferies nudged its target to $95 and kept a Hold, noting AI is real but still too small to change near-term forecasts.

In the background, MNDY completed an $870M buyback and a Schedule 13G revealed a new significant passive holder in monday.com. Those moves suggest some big players quietly see value into this 42% year-to-date drawdown, even as the crowd trades headlines.

Conclusion

For active traders, MNDY now sits at the crossroads of momentum, fear, and long-term AI hype. monday.com reaffirmed its 2026 revenue outlook of $1.466B–$1.474B, right in line with roughly $1.47B consensus, and guided to non-GAAP operating income of $230M–$234M with margins near 16%. Management also projected $280M–$290M in adjusted free cash flow, or about a 19%–20% margin, even while dealing with a 100–200 basis-point foreign-exchange drag. That’s not a broken business model.

Yet the stock reaction says traders are demanding proof that this AI pivot will reignite growth, not just pad margins. MNDY’s sharp post-earnings selloff, followed by a steady grind back toward the mid-$90s, sets up clean technical levels to stalk. The recent intraday range between the low $90s and mid-$90s shows where supply and demand are fighting right now.

From an educational standpoint, monday.com is a live case study in how Wall Street prices execution risk. Strong current numbers, cautious near-term guidance, heavy restructuring, and mixed analyst calls all feed into the tape. As Tim Sykes likes to remind traders, “The market doesn’t care about what you think should happen; it cares about what actually trades on the screen. Adapt or get left behind.” As millionaire penny stock trader and teacher Tim Sykes, says, “It’s better to go home at zero than to go home in the red.”. For MNDY, that means respecting the volatility, studying the levels, and letting the price action confirm any thesis rather than trying to predict it.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”