monday.com Ltd. (MNDY) Is Part Of The "Enterprise Software Revulsion," Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Questioned Official Data. monday.com Ltd. (NASDAQ:MNDY) is one of the stocks Jim Cramer recently discussed.

monday.com Ltd. (NASDAQ:MNDY) is an Israeli software company that develops and provides enterprise-focused products. Its shares have lost 22.8% year-to-date on the back of a stunning 29.8% drop in August, which underscores the brutal sentiment surrounding enterprise software in the age of AI. monday.com Ltd. (NASDAQ:MNDY) earnings were a negative catalyst, as even though the firm beat analyst and revenue estimates, the fact that its Q3 midpoint revenue guidance of $312 million missed analyst estimates of $313 million along with a conservative guidance hike and a weak Q2 beat were devastating for the shares. Here is what Cramer said about monday.com Ltd. (NASDAQ:MNDY):

“What I have here in my hand, Josh Baer . . .who upgrades, Morgan Stanley upgrades after, brutal, look at that, that’s actually a decline. Now, why was Monday down? Monday is a company that does work processes. . . it’s like a junior ServiceNow if you want to. Now it happened to have the misfortune of reporting on the same day that Ben Reitzes introduced the AI eats software, now actually a year and a half ago he actually coined that term so I don’t know why people are thinking that he just did it. But this is all part of this, enterprise software revulsion. We don’t want enterprise software, we want semiconductors. . .and I think that people should recognize that these companies are all being viewed as, let’s say carrion, because what’s happened is this that you can develop your own stuff that is better.

“Look I just got to tell you I think that all these stocks are going to be shrinking in price-to-earnings multiples. You shouldn’t be thinking about misses.”

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Disclosure: None. This article is originally published at Insider Monkey.