Monday.com Ltd. (MNDY) saw its stock price plummet 5.69% during intraday trading on Tuesday. The sharp decline followed the company's fourth-quarter earnings report, which featured better-than-expected results but disappointing forward guidance for 2026.
Despite beating analyst estimates for Q4 revenue and earnings, Monday.com issued revenue guidance for both the first quarter and full year 2026 that fell short of market expectations. This prompted a wave of analyst downgrades and significant price target reductions from major financial institutions including JPMorgan, Baird, Loop Capital, UBS, and Wells Fargo.
The negative sentiment was further amplified by broader industry concerns about AI disruption to traditional Software-as-a-Service (SaaS) business models. Recent commentary has highlighted how AI agents could reduce the need for human-centric workflow management tools like those offered by Monday.com, potentially threatening its seat-based licensing revenue model.