Monday.com (NASDAQ: MNDY) has endured a brutal stretch in 2026, with shares falling more than 40% year to date amid broad pressure on software-as-a-service stocks.
The work operating system company was hit particularly hard in February, when investors reacted sharply to a projection that Q1 2026 revenue would fall just short of analyst expectations.
When Monday.com actually reported its Q1 results in May, it beat those original analyst revenue estimates by a wide margin, posting revenue of $342.9 million for the quarter.
The company also raised its full-year guidance following the strong Q1 performance, which helped the stock recover from its lows but left it still down more than 70% over the past year.
Much of the selling pressure stems from investor fears that artificial intelligence will disrupt Monday.com’s core business model, which centers on visual workflow automation tools.
The platform is designed as a drag-and-drop interface that requires no technical expertise, but competitors are developing AI-powered tools that some investors believe could render that advantage obsolete.
Despite the pessimism, Monday.com’s underlying growth metrics remain strong, with Q1 revenue climbing 24% to $351.3 million and net dollar retention sitting at 110%.
Retention among larger enterprise customers was even more impressive, reaching 114% for customers with more than 10 users and 116% for those with annual recurring revenue of $50,000 or more.
Looking ahead, the company forecast Q2 revenue of $338 million to $340 million, representing 18% to 19% growth over the prior year period.
Monday.com also raised its full-year revenue guidance to between $1.466 billion and $1.474 billion, up from prior guidance of $1.452 billion to $1.462 billion.
The selloff has pushed MNDY’s valuation to unusually low levels, with the stock now trading at a price-to-sales ratio below 3 times and a forward price-to-earnings ratio below 19 times.
That kind of multiple is rarely seen for a company still projected to grow revenue by nearly 20%, making the current price a point of serious interest for value-oriented investors.
The central debate around Monday.com mirrors the broader SaaS discussion: whether organisations will increasingly build their own software using AI tools, or continue relying on dedicated providers for updates, security, maintenance, and compliance.
Monday.com has not stood still on the AI front, rolling out AI agents and a vibe coding tool called Monday Vibe, which has reportedly been performing well in early adoption.
The question of whether the risk is already priced into MNDY at current levels may be the most important one for investors considering a position in the stock right now.
