Shares of Monday.com Ltd (NASDAQ:MNDY) are nosediving this morning, even after the software company reported second-quarter earnings of $1.09 per share on revenue of $299 million, beating expectations. The company also raised its full-year guidance. While touting the success of its new artificial intelligence (AI) tools, Monday.com pointed to changes in Google's algorithm and rising operating costs as factors impacting the market.
At last check, the stock was down 26.4% to trade at $182.55, on pace for its worst single-day drop since February 2022. The shares are now down 22.5% this year, a sharp reversal from earlier this year when they surged nearly 30% after a strong fourth-quarter report. Earlier today, the security hit $17.05, its lowest level since April.
Analysts and traders are mixed on the security's outlook. Of the 24 firms in coverage, 22 rated it a "buy" or better. Options traders have been much more bearish than usual in the last two weeks, however. This is per its 10-day put/call volume ratio at the International Securities (ISE), Cboe Options (CBOE) and NASDAQ OMX PHLX (PHLX), which sits higher than 76% of readings from the past year.
In the options pit today, activity is rampant, with volume running at 40 times the intraday average amount. More than 9,000 calls and 7,000 puts have been traded so far. The August 180 call is the most popular, with new positions opening there.
