Monday.Com Ltd : Morgan Stanley Cuts Target Price To $200.00 From $236.00

Let’s dig into the relative performance of Asana and its peers as we unravel the now-completed Q3 productivity software earnings season.

Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.

The 17 productivity software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.1% since the latest earnings results.

Asana

Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.

Asana reported revenues of $201 million, up 9.3% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

The stock is down 13.9% since reporting and currently trades at $11.58.

Best Q3: Pegasystems

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Pegasystems scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.7% since reporting. It currently trades at $53.22.

Weakest Q3: SoundHound AI

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year, exceeding analysts’ expectations by 2.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.

As expected, the stock is down 23.5% since the results and currently trades at $10.99.

Read our full analysis of SoundHound AI’s results here.

monday.com

With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.

monday.com reported revenues of $316.9 million, up 26.2% year on year. This number surpassed analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

The company added 291 enterprise customers paying more than $50,000 annually to reach a total of 3,993. The stock is down 29.5% since reporting and currently trades at $133.75.

Read our full, actionable report on monday.com here, it’s free.

Atlassian

Started by two Australian university friends who funded their startup with credit cards, Atlassian provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.

Atlassian reported revenues of $1.43 billion, up 20.6% year on year. This print topped analysts’ expectations by 2.2%. More broadly, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ billings estimates.

Atlassian had the weakest full-year guidance update among its peers. The stock is down 20% since reporting and currently trades at $128.58.

Read our full, actionable report on Atlassian here, it’s free.

What Happened?

Shares of work management platform monday.com jumped 4.3% in the afternoon session after positive analyst ratings affirmed confidence in the company's outlook. 

BTIG analyst Allan Verkhovski reiterated a 'Buy' rating and maintained a price target of $210. In a similar show of support, Jefferies analyst Brent Thill also maintained a 'Buy' rating on the stock with a price target of $260 per share. The positive sentiment appeared widespread, as reports indicated that all eight Top Analysts covering the stock in the previous three months had rated it a 'Buy'. A broader consensus from 22 analysts also supported a 'Buy' rating for the company, reflecting strong confidence from market watchers.

After the initial pop the shares cooled down to $134.30, up 3.3% from previous close.

What Is The Market Telling Us

monday.com’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 23 hours ago when the stock dropped 5.6% on the news that tech stocks pulled back as reports surfaced that Chinese customs authorities blocked Nvidia's H200 AI chips, effectively halting their entry despite recent U.S. export approvals. 

This semiconductor sell-off, led by Broadcom and Micron, reflected deepening fears that the "AI trade" was colliding with a protectionist "new normal." Investors were concerned about the prospect of a fragmented global order where tech giants are caught between Washington's industrial strategy and Beijing's push for semiconductor sovereignty.Broadening the risk, markets were also agitated about the Justice Department's investigation into Fed Chair Jerome Powell, sparking concerns over central bank independence. This domestic political friction, paired with rising oil prices from Iranian civil unrest, likely forced a pivot from growth to defense.

monday.com is down 6.4% since the beginning of the year, and at $134.30 per share, it is trading 59% below its 52-week high of $327.92 from February 2025. Investors who bought $1,000 worth of monday.com’s shares at the IPO in June 2021 would now be looking at an investment worth $750.83.

What Happened?

A number of stocks fell in the afternoon session after tech stocks pulled back as reports surfaced that Chinese customs authorities blocked Nvidia's H200 AI chips, effectively halting their entry despite recent U.S. export approvals. 

This semiconductor sell-off, led by Broadcom and Micron, reflected deepening fears that the "AI trade" was colliding with a protectionist "new normal." Investors were concerned about the prospect of a fragmented global order where tech giants are caught between Washington's industrial strategy and Beijing's push for semiconductor sovereignty.Broadening the risk, markets were also agitated about the Justice Department's investigation into Fed Chair Jerome Powell, sparking concerns over central bank independence. This domestic political friction, paired with rising oil prices from Iranian civil unrest, likely forced a pivot from growth to defense.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Communications Platform company Twilio fell 4.6%. Is now the time to buy Twilio? Access our full analysis report here, it’s free.
• Cloud Monitoring company Datadog fell 3%. Is now the time to buy Datadog? Access our full analysis report here, it’s free.
• Document Management company Box fell 3.1%. Is now the time to buy Box? Access our full analysis report here, it’s free.
• Project Management Software company monday.com fell 5.6%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
• Tax Software company BlackLine fell 4.7%. Is now the time to buy BlackLine? Access our full analysis report here, it’s free.

Zooming In On monday.com (MNDY)

monday.com’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 5.1% on the news that Barclays lowered its price target on the stock amid a broader market decline. 

The investment bank trimmed its price target to $194 from $202, though it kept its "Overweight" rating on the shares. This adjustment came as some observers noted potential challenges, including revenue guidance for the fourth quarter of 2025 that fell short of expectations and pointed to slower growth. Adding to the pressure, the stock's fall happened on a day when major stock indexes like the S&P 500 and Nasdaq also traded lower.

monday.com is down 8.9% since the beginning of the year, and at $130.60 per share, it is trading 60.2% below its 52-week high of $327.92 from February 2025. Investors who bought $1,000 worth of monday.com’s shares at the IPO in June 2021 would now be looking at an investment worth $730.12.

What Happened?

Shares of work management platform monday.com fell 5.1% in the morning session after Barclays lowered its price target on the stock amid a broader market decline. 

The investment bank trimmed its price target to $194 from $202, though it kept its "Overweight" rating on the shares. This adjustment came as some observers noted potential challenges, including revenue guidance for the fourth quarter of 2025 that fell short of expectations and pointed to slower growth. 

What Is The Market Telling Us

monday.com’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock dropped 1.6% on the news that a broader market rotation out of the technology sector led to profit-taking following a recent rally. 

The move was part of a wider trend that saw high-growth technology stocks fall, with the Nasdaq experiencing the sharpest decline among the major indices. Multiple reports indicated that traders were locking in profits, particularly from the artificial-intelligence trade, which had previously seen a strong run-up. This market action represented a shift in investor focus, as money moved out of tech. 

Defense stocks emerged as the primary beneficiary of this capital shift, surging after President Trump proposed a massive $1.5 trillion defense budget for 2027. Major contractors rallied on the news, with Northrop Grumman jumping over 10% and Lockheed Martin gaining nearly 8%, providing a counterbalance to the tech slump that kept the S&P 500 flat. The rotation into heavy industry was further supported by a stabilization in energy markets, as crude prices rebounded.

monday.com is down 3.5% since the beginning of the year, and at $138.44 per share, it is trading 57.8% below its 52-week high of $327.92 from February 2025. Investors who bought $1,000 worth of monday.com’s shares at the IPO in June 2021 would now be looking at an investment worth $773.98.

What Happened?

A number of stocks fell in the morning session after a broader market rotation out of the technology sector led to profit-taking following a recent rally. 

The move was part of a wider trend that saw high-growth technology stocks fall, with the Nasdaq experiencing the sharpest decline among the major indices. Multiple reports indicated that traders were locking in profits, particularly from the artificial-intelligence trade, which had previously seen a strong run-up. This market action represented a shift in investor focus, as money moved out of tech. 

Defense stocks emerged as the primary beneficiary of this capital shift, surging after President Trump proposed a massive $1.5 trillion defense budget for 2027. Major contractors rallied on the news, with Northrop Grumman jumping over 10% and Lockheed Martin gaining nearly 8%, providing a counterbalance to the tech slump that kept the S&P 500 flat. The rotation into heavy industry was further supported by a stabilization in energy markets, as crude prices rebounded.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Marketing Software company Sprout Social fell 5.2%. Is now the time to buy Sprout Social? Access our full analysis report here, it’s free for active Edge members.
• Vulnerability Management company Tenable fell 2.8%. Is now the time to buy Tenable? Access our full analysis report here, it’s free for active Edge members.
• E-commerce Software company Wix fell 2.7%. Is now the time to buy Wix? Access our full analysis report here, it’s free for active Edge members.
• Project Management Software company monday.com fell 1.6%. Is now the time to buy monday.com? Access our full analysis report here, it’s free for active Edge members.
• Data Storage company DigitalOcean fell 4%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Sprout Social (SPT)

Sprout Social’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 2.8% on the news that a broader market rally drove investor optimism in artificial intelligence and big tech stocks. The S&P 500, Dow Jones, and Nasdaq all pushed higher, approaching record levels set late last year. Much of the positive momentum was linked to the technology sector, with a particular focus on companies advancing artificial intelligence, a key theme at the annual CES trade show in Las Vegas. This continued a powerful trend from 2025, when AI-related developments were a primary catalyst for the market's bull run. The upbeat sentiment was further supported by hopes for easier monetary policy from the Federal Reserve following a weaker-than-expected US Services PMI reading.

Sprout Social is flat since the beginning of the year, and at $10.37 per share, it is trading 69.5% below its 52-week high of $34.03 from January 2025. Investors who bought $1,000 worth of Sprout Social’s shares 5 years ago would now be looking at an investment worth $202.93.