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monday.com - AI Stock Analysis
Analysis generated September 4, 2025
monday.com is a versatile work operating system (Work OS) that enables organizations to run more efficiently by allowing them to build and customize their own workflows and processes. Founded in 2012, it has grown rapidly and attracted a significant customer base across various industries. The company is well known for its intuitive and visually appealing platform that integrates with numerous external services to streamline operations.
Fundamental Analysis
Revenue: For the last quarter, monday.com reported revenue of $299 million, marking a 5.94% increase compared to the previous quarter. This positive growth rate is a healthy sign, suggesting that the company has been successful in expanding its customer base and improving its offerings. Year-over-year growth is even more impressive with a 26.64% increase, which reflects sustained demand for their product.
Net Income: The net income for the last quarter was $1.6 million. While this is a positive figure, it represents a staggering 94.26% decrease compared to the prior quarter, raising some concerns. Year-over-year, the net income has decreased by 89.01%, which is troubling and suggests that the company may be encountering operational inefficiencies or increased costs.
EBITDA: monday.com reported an EBITDA of $0 in the last quarter, a 100% decrease from the previous quarter and the same quarter last year. This could be an alarming sign that the company struggles with profitability, a key metric that may affect investor confidence in the medium to long term.
P/E Ratio: Currently, monday.com has a Price to Earnings (P/E) ratio of 243.3, a figure that could be interpreted as an indication of overvaluation. A high P/E ratio often reflects high investor expectations but also suggests a bearish outlook when not supported by strong earnings growth.
Technical Analysis
The current stock price of monday.com is $182.42, which has seen a significant decrease of 26.96% over the past month. This short-term decline might cause concern among investors. Additionally, on a yearly scale, the stock price has decreased by 26.77%, raising questions about the company’s long-term stability.
Despite these declines, the overall trend remains bullish. The Simple Moving Average (SMA10) is $187.42, slightly higher than the previous SMA10 of $186.71, indicating a potential upward trend in price movement. However, the Relative Strength Index (RSI) is 71.6, suggesting that the stock may be overbought and could experience bearish conditions soon.
Alternative Data Analysis
Job postings and employee sentiment point to a positive outlook. With 175 open positions, up by 111% in the last couple of months, monday.com is clearly looking to expand and grow its operations. Moreover, 84% of employees have a positive business outlook—another indicator of internal confidence and a healthy corporate environment.
Customer acquisition metrics also lean towards a bullish trend for monday.com. The company's webpage receives around 40 million visitors, a 20% increase in recent months. The daily mobile app downloads stand at an impressive 2,300, up by 39% over the same period, suggesting that the company is attracting more users and potential customers.
Customer engagement, measured by social media followers, shows a mixed picture. The number of Instagram followers has risen by 7% to 170,000, a positive indicator of brand interest. Meanwhile, the Twitter follower count remains stagnant at 41,000.
Finally, AltIndex’s AI score for monday.com stands at 68, signaling a buy recommendation based on integrated fundamental, technical, and alternative data analyses.
Conclusion
monday.com presents a compelling story of growth and expansion. While the company has been able to grow its revenue significantly both quarterly and annually, the substantial decreases in net income and EBITDA raise some red flags about profitability. The high P/E ratio also suggests a degree of overvaluation.
On the technical front, recent stock price declines present some immediate concerns, although the bullish trend in moving averages is promising. However, the overbought condition indicated by the high RSI may lead to future price corrections.
The alternative data offers a glimpse of the company's bright future prospects. Positive employee sentiment, job growth, and increasing customer acquisition and engagement metrics all suggest that monday.com is in a strong position to capitalize on its market opportunities.
Given the overall analysis, including both the strengths and concerns, a generic recommendation would be to approach monday.com with cautious optimism. Investors may want to keep a close watch on profitability and other financial health indicators while considering the growth potential the company exhibits.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
