MNDY Shares Decline 21% in 6 Months: Should You Buy, Sell or Hold?

monday.com MNDY shares have lost 20.9% over the past six months, underperforming the broader Zacks Computer and Technology sector’s decline of 14.9% and the Zacks Internet - Software industry’s fall of 7.2%.

MNDY has also underperformed its industry peers BlackBerry BB, Confluent CFLT and Affirm AFRM.

While BlackBerry shares have gained 19.2%, Confluent and Affirm have declined 7.1% and 7.6%, respectively, during the same period.

The underperformance is largely attributed to a cautious outlook for 2025, putting pressure on profit margins. The company’s ongoing transition from a product-led growth model to a sales-led growth strategy has led to extended sales cycles, particularly for multi-product offerings, which may affect sales cycles and operational efficiency.

monday.com Ltd. Price and Consensus

 

monday.com Ltd. price-consensus-chart | monday.com Ltd. Quote

Ongoing macroeconomic uncertainty and unfavorable currency fluctuations further cloud the company’s near-term prospects.

MNDY Provides Soft 2025 Outlook

monday.com issued a notably cautious outlook for fiscal 2025, signaling potential headwinds in its growth trajectory. A key concern is the anticipated 100-200-basis-point drag on revenue growth due to adverse foreign exchange movements.

Management expects full-year revenue growth to moderate to 24-26%, which suggests a deceleration from the 33% rise in 2024.

Profitability is also expected to tighten. The company projects a non-GAAP operating margin of 11-12%, implying a decline from 14% in the prior year, reflecting increased investments in sales infrastructure and continued expansion into the enterprise segment.

The Zacks Consensus Estimate for 2025 revenues is pegged at $1.21 billion, indicating a year-over-year increase of 24.81%.

The consensus mark for 2025 earnings is pegged at $3.30 per share, down 1.5% over the past 60 days, implying a year-over-year decline of 5.71%.

However, the company’s strategic emphasis on AI, including AI Blocks and a Digital Workforce of AI Agents, and enterprise solutions underscores its commitment to driving automation and scalability. These initiatives position monday.com well for steady growth in 2025.

MNDY Drives Growth With AI Platform & Product Innovation

monday.com has launched a robust AI-driven product strategy aimed at transforming its Work OS platform and strengthening its position for continued success in 2025. This strategic vision is anchored around three core pillars — AI Blocks, Product Power-ups and the Digital Workforce — all of which are designed to enhance automation, scalability and user empowerment.

A key highlight of this strategy is the introduction of AI Blocks — a modular, no-code tools that allow users to integrate AI capabilities like data extraction and summarization into their workflows. Since AI has been embedded into the monday.com platform, customers have performed approximately 10 million AI actions as of the end of 2024, nearly tripling quarter over quarter.

The Digital Workforce comprises AI-powered agents designed to operate continuously, handling tasks like project risk assessment and customer service issue identification. In March 2025, monday.com officially released its first AI agent, monday Expert, which is now available to users.

Extending its AI capabilities, the company has fully rolled out monday service, which is its Enterprise Service Management platform. Designed to centralize service operations, it includes smart features like AI-powered ticket resolution, automatic classification and intelligent routing. Since its launch, the platform has facilitated the resolution of more than 215,000 tickets, significantly improving efficiency and reinforcing its potential in the enterprise IT service space.

In 2024, the company reached a milestone with the completion of mondayDB 2.0 — an upgraded infrastructure layer that boosts the platform’s ability to support larger and more complex use cases. Simultaneously, monday.com deepened its enterprise market presence, growing its largest customer seat count to 80,000, a strong signal of scalability and demand.
 
In 2025, the company is poised to build on this momentum by expanding its reach, enhancing product capabilities, and continuing to lead through innovation in AI and workflow automation.

What Should Investors Do With MNDY Shares?

monday.com remains well-positioned for long-term success, supported by its strong momentum in AI-led innovation, growing enterprise adoption and scalable Work OS platform. However, the company’s cautious 2025 outlook and margin compression warrant near-term caution.

Given these mixed signals, a prudent hold position is recommended for investors. Currently, MNDY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research