Software Company monday.com Plunges 22% Today, -82% From High, -50% From IPO Price, Into Our Imploded Stocks
•February 9, 2026
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Why It Matters
The plunge underscores the broader correction in high‑growth SaaS valuations and forces investors to reassess Monday.com’s path to profitability amid slowing revenue growth and dilution pressures.
Key Takeaways
- •Stock down 22% to $76.70, record low
- •Down 82% from 2021 high, 51% from IPO
- •Q4 revenue $334M, 25% growth, beat forecasts
- •Guidance missed; operating margin fell to 1%
- •Cash $1.62B, market cap $4B, P/E 34
Pulse Analysis
Monday.com’s sharp slide reflects a wider re‑pricing of enterprise SaaS firms that surged during the post‑pandemic boom. Investors who once rewarded rapid top‑line expansion are now demanding sustainable margins, especially as AI‑driven competition intensifies. The stock’s 22% intraday drop and record‑low level highlight how quickly market sentiment can shift when growth expectations are revised.
Financially, the company posted a respectable Q4 revenue of $334 million, a 25% year‑over‑year increase that beat consensus, yet GAGA operating income fell to $2.4 million and margins eroded to 1%. The forward guidance for Q1 revenue and operating income missed analyst forecasts, prompting concerns about the durability of its growth trajectory. Moreover, a 3.1% year‑over‑year increase in share count signals ongoing dilution, while short interest hovering around 10% of float adds volatility potential.
Looking ahead, Monday.com sits on a solid cash cushion of $1.62 billion, providing runway for product development and possible strategic acquisitions. However, the high trailing P/E of 34, combined with slowing growth and weaker guidance, suggests the stock may still be overvalued for its current fundamentals. Investors weighing a bottom‑fish opportunity must balance the upside of a cash‑rich balance sheet against the risk of further earnings shortfalls and market‑wide SaaS headwinds.
Software Company monday.com Plunges 22% today, -82% from High, -50% from IPO Price, into our Imploded Stocks
Is it finally time to bottom‑fish this stock? Or is it a falling knife?
By Wolf Richter for WOLF STREET.
Amid the general repricing of providers of enterprise Software as a Service (SaaS) in recent months, cloud‑based collaborative work‑management platform with “Agentic AI products,” monday.com, reported earnings this morning, upon which its shares MNDY plunged by 22%, to about $76.70 at the moment. If it closes at this price, it will be a record‑low closing price.
Since the all‑time high in November 2021 ($444.70), the stock has now plunged by 82%, and thereby has become eligible for our pantheon of Imploded Stocks, for which the minimum requirement is a plunge of 70% from the more or less recent all‑time high.
The company went public in June 2021 at an IPO price of $155 a share, amid the immense consensual hallucination at the time. Shares are now down by 51% from the IPO price.
In early November, when the stock traded at over $200, 80% of the 25 brokerage firms that cover the stock had a “strong buy” rating on the stock, 8.3% a “buy” rating, and 12.5% a “hold” rating, according to Zacks.
But none had the only rating that would have nailed it: “Sell.” Then, armed with these ratings, the stock plunged by 63% in three months. Why is anyone still paying attention to these ratings?
The stock is traded on the Nasdaq, the company is headquartered in Israel, and files its earnings reports (6‑Ks) with the SEC as a “foreign issuer.”
Its Q4 revenues of $334 million, revenue growth of 25%, and adjusted profit of $1.04 per share beat the average of analysts’ expectations.
But its Q1 revenue guidance of $338‑340 million fell short; its Q1 revenue growth guidance of 20% fell short; its Q1 guidance for operating income fell short; and its guidance for the full‑year metrics fell short.
GAAP operating income dropped to $2.4 million in Q4, from $9.6 million a year ago; GAAP operating margin dropped to 1%, from 4% a year ago.
Finally time to bottom‑fish this stock? Or is it a falling knife?
I don’t have answers here, only some observations: With GAAP earnings per share in 2025 of $2.24, and even at the current collapsed share price, the stock still has a trailing 12‑month P/E ratio of 34.
That’s high for a company that is dialing down its revenue growth rate to 20%, and maybe dialing‑down more later amid a whirlwind of software industry challenges, including from AI, perceived or real. The company also continues to issue new shares and thereby continues to dilute existing shareholders: In 2025, its share count increased by 3.1% year‑over‑year.
At the current price, the stock has a market cap of about $4 billion. The company does sit on $1.62 billion in cash and marketable securities, and it still has revenue growth, though at a slower rate, and those revenues grew to $1.2 billion in the year 2025. And short interest amounts to about 10% of its float, which could make for some fireworks when these folks cover their short positions.
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