Monday.com Ltd Faces a Wave of Analyst Downgrades and AI‑Related Uncertainty

Monday.com Ltd. (NASDAQ: MNDY) has been under intense scrutiny in the week ending 10 February 2026, as a cascade of analyst revisions and AI‑related concerns converged to shake the company’s valuation and market perception. The following highlights the key developments that have defined the company’s recent trajectory.

1. Persistent Declines in Analyst Price Targets

  • Morgan Stanley slashed its price target from $200 to $115 on 10 February, citing a need to recalibrate expectations for the upcoming year.
  • Cantor Fitzgerald cut its target further to $95 on the same day, reflecting heightened uncertainty about the company’s ability to sustain growth amid competitive pressures.
  • DA Davidson reduced its forecast to $100 amid concerns that demand from small‑to‑medium‑enterprise (SME) customers may be weaker than anticipated.
  • Canaccord Genuity lowered its target from $190 to $140 on 11 February, a move that triggered a gap‑down in Monday.com shares on the open, falling from $98.00 to $76.92 before settling around $78.85 during the session.
  • Benzinga reported that multiple analysts had slashed their forecasts following Monday.com’s Q4 results, reinforcing the broader market sentiment that the company’s revenue outlook for 2026 may not meet expectations.

2. AI‑Driven Market Sentiment and Investor Concerns

  • Several news items flagged AI advancements as both a threat and an opportunity for Monday.com. While the company’s platform incorporates AI features, market participants have expressed uncertainty over the costs of AI investment and whether these initiatives are fully reflected in the company’s guidance.
  • A note from JPMorgan Chase & Co. suggested that the recent sell‑off of software stocks may have been overly bearish on AI disruption, potentially leaving Monday.com at a “bargain bin” price relative to its fundamentals.
  • A separate article highlighted that Monday.com’s “no‑touch channel” weakness and AI investment costs were embedded in guidance without prior disclosure, raising questions about transparency and the completeness of the company’s financial reporting.

3. Market Reaction and Share Price Dynamics

  • Monday.com’s share price ended the week below its 52‑week low of $73.01, trading at $74.11 as of 9 February.
  • The gap‑down on 10 February reflected a sharp shift in investor sentiment following the analyst downgrades, with the stock falling over 20 % in a single day.
  • Despite this, the company’s price‑earnings ratio of 43.75 remains high relative to its peers, suggesting that market participants expect significant valuation compression before a potential rebound can occur.

4. Strategic Implications for Monday.com

  • The convergence of price‑target cuts, AI‑related uncertainty, and negative earnings guidance may pressure Monday.com to accelerate its monetization strategy and enhance transparency around AI investment outcomes.
  • With a market cap of approximately $4 billion, the company faces the dual challenge of maintaining growth momentum while navigating a volatile environment where software firms are scrutinized for both their innovation trajectories and financial discipline.

5. Outlook

Analysts continue to weigh the potential upside from AI integration against the risks of over‑investment and demand erosion in the SME segment. The next earnings release will be crucial in determining whether Monday.com can restore investor confidence and realign its valuation with the broader software market’s expectations.