Why monday.com stock is attracting attention again
monday.com (MNDY) is garnering renewed attention after reporting first-quarter 2026 results that beat Wall Street expectations, along with a reset outlook and a significant shift to an AI-centric work platform.
Revenue for the quarter was US$351.27 million, compared with US$282.25 million in the same period last year, and net income was US$28.03 million, compared with US$27.43 million. Basic earnings per share from continuing operations were US$0.58 and diluted earnings per share were US$0.57.
Check out our latest analysis for monday.com.
The recent strong first quarter and shift to an AI-centric work platform has not yet translated into sustained profits. The stock has increased 10.74% in 30 days, but has fallen 49.82% since the beginning of the year, resulting in a one-year total shareholder return of 75.45%. This shows that while there is a lot of interest in new directions for AI, they remain cautious about the long-term outlook.
If you’re considering monday.com’s AI axis and want to know what other factors are shaping this theme, it’s worth taking a look at these 64 AI stocks that are more profitable than just burning cash.
With monday.com’s stock price plummeting over the past year and trading at a significant discount to some analyst targets, we have to ask whether there is still any meaningful value left, or if the market has already priced in future growth.
Most popular story: 42.3% are underrated
The most followed narrative pegs monday.com’s fair value at $124.64, compared to the last closing price of $71.97, creating a large valuation gap that relies on long-term AI and product assumptions.
Rapid integration of generative AI and low-code/no-code capabilities (e.g., Monday Magic, Vibe, Sidekick) enables broader automation and workflow customization, increasing platform differentiation and stickiness, and potentially increasing customer retention, ARPU, and net profit at monetization scale.
Read the whole story.
Want to see what kind of revenue path and earnings profile is reflected here? Fair value depends on steady sales growth, margin compression, and future earnings multiples assuming monday.com continues to grow its Work OS footprint.
Result: Fair value USD 124.64 (undervalued)
Read the full explanation to understand what’s behind the predictions.
However, clear pressure points still exist, such as high spending on sales and marketing and reliance on performance marketing channels that can limit future revenue growth.
Find out the key risks to this monday.com story.
Another look: What does the rate of return tell you?
This 42.3% undervaluation story sits alongside the more bleak picture from the revenue-based ratio. monday.com’s P/E ratio is 30.6x, compared to a fair multiple of 21.9x, US Software industry’s 28.3x, and peer multiples of approximately 30.6x. Simply put, the stock looks expensive by this standard. The question is, which signals should we pay more attention to when the next news comes in?
See what the numbers say about this price. Please check the rating breakdown.
next step
With both concern and optimism in the story so far, it makes sense to examine the same data for yourself and act quickly. To weigh these signals side by side and decide where you stand, start with three key rewards and one key warning signal.
Looking for more investment ideas?
If monday.com has you thinking about where your capital could work even harder, don’t stop here. Because there are many other opportunities worth checking out before the market moves forward.
This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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