monday.com Ltd. (MNDY): A Bull Case Theory

We came across a bullish thesis on monday.com Ltd. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on MNDY. monday.com Ltd.'s share was trading at $284.21 as of July 15^th. MNDY’s trailing and forward P/E were 284.21 and 73.53, respectively according to Yahoo Finance.

Monday.com (NASDAQ: MNDY) has emerged as a global leader in work management software through its low-code/no-code Work OS platform, serving ~245,000 customers across 200+ industries. With deep product breadth—spanning CRM, Dev, Service Management, and scalable infrastructure via MondayDB 2.0—the platform drives operational agility for both SMBs and enterprises. Monday’s largest moat stems from high switching costs created by deeply embedded, customized workflows, while economies of scale are reflected in its 90% gross margins.

Brand strength, underpinned by a bold marketing history and top G2 and Gartner ratings, and growing network effects from third-party app developers enhance its defensibility. Its AI strategy, built around AI Blocks, Product Power-ups, and a Digital Workforce, is gaining traction, with AI actions growing 150% YoY to 26 million.

Product innovation continues with the launch of features like portfolio reporting, AI-powered insights, and Monday Code Platform, enabling third-party agent integrations. Financially, Monday is in a strong position: GAAP-profitable, operating margin at 14.4%, and a robust balance sheet with $1.6B in cash vs. $123M in debt. Despite a slight revenue growth deceleration (+30.1% YoY), customer growth remains strong, with record CRM (+85% YoY), Dev (+104%), and Service (nearly 2x QoQ) account additions.

Large customer retention improved (NDR: 117%), and cross-sell momentum is building. Valuation at 10.4x EV/Sales and 76x forward P/E appears fair to modest, especially given top-tier revenue forecasts in the CRM sector. With a TAM of $101B growing at 14% CAGR, Monday remains well-positioned for durable long-term growth, supported by product breadth, AI adoption, and expanding enterprise traction.

Previously, we covered a bullish thesis on Monday.com Ltd. (MNDY) by @bigbullcap in May 2025, which highlighted resilient growth and compelling valuation amid software sector weakness. The stock has depreciated ~1.5% since then as the rerating thesis hasn’t played out. The thesis still stands. Sergey shares a similar view but emphasizes product depth and AI-led structural advantages.

Monday.com Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held MNDY at the end of the first quarter which was 68 in the previous quarter. While we acknowledge the potential of MNDY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.