Monday.com (MNDY) Slid on Conservative Guidance

Polen Capital, an investment management company, released its “Polen U.S. SMID Cap Growth Strategy” third-quarter 2025 investor letter.  A copy of the letter can be downloaded here. The strategy returned 14.8% gross and 14.4% net of fees in the quarter, compared to the Russell 2500 Growth Index return of 10.7%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Polen U.S. SMID Cap Growth Strategy highlighted stocks such as Monday.com Ltd. (NASDAQ:MNDY). Monday.com Ltd. (NASDAQ:MNDY) develops software applications and work management tools. The one-month return of Monday.com Ltd. (NASDAQ:MNDY) was -26.12%, and its shares lost 50.41% of their value over the last 52 weeks. On November 21, 2025, Monday.com Ltd. (NASDAQ:MNDY) stock closed at $146.85 per share, with a market capitalization of $7.57 billion.

Polen U.S. SMID Cap Growth Strategy stated the following regarding Monday.com Ltd. (NASDAQ:MNDY) in its third quarter 2025 investor letter:

"The most significant detractors from the Portfolio’s relative performance in the quarter were Grupo Financiero Galicia, Monday.com Ltd. (NASDAQ:MNDY), and Astera Labs (not owned). Monday.com is a collaborative workflow management platform that helps teams plan, execute, and communicate about work. Despite beating expectations on the top and bottom line, the stock sold off on the back of its earnings report given conservative Q3 and full-year guidance. We like Monday’s steady push up market from SMB to enterprise customers, its expanding platform reach, and long-term vast market opportunities relative to its current size."

Monday.com Ltd. (NASDAQ:MNDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 67 hedge fund portfolios held Monday.com Ltd. (NASDAQ:MNDY) at the end of the second quarter, up from 64 in the previous quarter. In the third quarter of 2025, Monday.com Ltd. (NASDAQ:MNDY) reported total revenue of $317 million, marking a 26% increase from the year-ago quarter. While we acknowledge the potential of Monday.com Ltd. (NASDAQ: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.

In another article, we covered Monday.com Ltd. (NASDAQ:MNDY) and shared the list of best mid cap tech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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