Core Insights - Whetstone Capital Advisors, LLC sold all its shares in monday.com Ltd., amounting to 79,172 shares valued at approximately $15.33 million, during the fourth quarter of 2025 [2][6] - The sale reflects a broader trend of divesting from SaaS stocks that may struggle in the evolving market landscape influenced by artificial intelligence [6][11] Company Overview - monday.com Ltd. is a cloud-based software provider specializing in work management solutions, with a market capitalization of $3.80 billion and a revenue of $1.23 billion for the trailing twelve months (TTM) [4][5] - The company reported a net income of $118.74 million (TTM) and offers a scalable SaaS platform to enhance organizational workflows and collaboration [4][5] Market Performance - As of February 12, 2026, shares of monday.com Ltd. were priced at $73.63, reflecting a significant decline of 76.8% over the past year, underperforming the S&P 500 Index by 89.7 percentage points [7][10] - The stock's price has fluctuated between $68.68 and $316.98 over the past 52 weeks, indicating high volatility [10] Investment Implications - The decision to sell monday.com was significant as it was the largest position closed by Whetstone in the fourth quarter, suggesting a strategic shift in the fund's investment approach [6][9] - Despite the sale, Whetstone maintains a substantial investment in technology stocks, indicating a selective approach rather than a complete withdrawal from the sector [10]

Core Insights - The Optimist Fund aims to deliver exceptional long-term investment performance, targeting capital compounding at mid-teens or better over decades [2] - The fund has been operational for nearly four years and is tracking positively towards its five-year investment lens [3] Performance Overview - As of December 31, 2025, the fund's compound returns are as follows: 1 Year: 32.2%, 2 Year: 48.4%, 3 Year: 59.1%, Since Inception: 19.1% [4] - In Q4 2025, the fund experienced a decline of 8.5%, but remains optimistic about the fundamental performance of its holdings [4] Investment Strategy - The fund focuses on identifying businesses where deep research reveals a gap between market expectations and long-term realities, referred to as developing unique insights [5] - The strategy emphasizes long-term investment outcomes over short-term volatility, allowing the fund to capitalize on market dislocations [9][10] Key Holdings and Performance - Top contributors in Q4 included Wayfair and Carvana, both showing significant year-over-year revenue growth [22][23][24] - Top detractors included ThredUp and Monday.com, with ThredUp showing strong fundamentals despite stock price declines [25][26][27] Portfolio Adjustments - The fund exited its position in Fiverr due to a lack of conviction in its growth trajectory, while initiating new positions in Root and Affirm [32][33][35] - DiscoverIE is highlighted as a high-quality industrial compounder with potential for significant EPS growth over the next five years [36][38][39] Future Outlook - The fund believes the next five years will outperform the previous four, driven by improved valuations and stronger underlying business fundamentals [20][21]

Tim Beyers: To that point, Jason, let's talk about two that are on the radar this morning as we are taping. This is on Monday late morning Mountain Time. Both Monday.com, ticker MNDY, and Kyndryl, ticker KD, are getting absolutely slaughtered. Monday has been down more than 20% through various parts of the day. Kyndryl down more than 50%. These two are a little different, though. We'll talk about Monday in a second, but just the story on Kyndryl as the CFO and the General Counsel both appear to have been d ...

Core Insights - monday.com Ltd. (NASDAQ:MNDY) is recognized as one of the top mid-cap AI stocks to consider for investment by hedge funds [1] - UBS analyst Taylor McGinnis has lowered the price target for monday.com from $140 to $93, maintaining a Neutral rating, which suggests a potential upside of 25.49% from current levels as of February 11 [1] - The price target adjustment was influenced by the company's fourth-quarter earnings report, which indicated significant margin pressure [1] Financial Performance - For Q4, monday.com reported revenue of $333.9 million, representing a year-over-year increase of 24.6%, and exceeding consensus estimates by $4.24 million [2] - Non-GAAP earnings per share for the quarter were $1.04, surpassing estimates by $0.12 [2] - The company generated $59.7 million in net cash from operating activities and $56.7 million in adjusted free cash flow, both of which decreased from $76.7 million and $72.7 million in the same quarter of the previous year [2] - The number of paid customers increased across all segments [2] Future Guidance - For Q1 2026, monday.com anticipates revenue between $338 million and $340 million, slightly below the consensus estimate of $342.87 million, indicating approximately 20% year-over-year growth [3] - Non-GAAP operating income is expected to be between $37 million and $39 million, with an operating margin projected at 11% to 12%, factoring in a negative foreign exchange impact of 100 to 200 basis points [3] Company Overview - monday.com develops software applications globally, including in the United States, Middle East, Europe, United Kingdom, and Africa [4] - The company's product offerings include monday work management, monday CRM, monday dev, monday service, WorkCanvas, and WorkForms, primarily serving educational institutions, government entities, and various business units [4]

Monday.com Ltd. (NASDAQ:MNDY) is one of the most undervalued mid cap stocks to buy now. On February 10, TD Cowen lowered its price target on Monday.com to $125 from $200 with a Buy rating. The firm noted that Q2 results were below expectations due to disruption in paid search channels from AI search, though it highlighted that upmarket momentum remains a strong point for the company. DA Davidson lowered its price target on Monday.com on the same day to $100 from $150 with its Buy rating. The firm noted t ...

Core Viewpoint - Monday.com experienced a significant 25% drop in stock price despite reporting better-than-expected earnings, primarily due to disappointing guidance for the next fiscal year [1][4]. Financial Performance - Revenue for Monday.com increased by 25% year over year, reaching $333.9 million, while adjusted earnings per diluted share decreased from $1.08 to $1.04, surpassing Wall Street's expectations of $0.92 per share and revenue of approximately $329.5 million [2][3]. - The results exceeded the midpoints of the company's guidance ranges, which targeted revenue around $329 million and weaker operating income [3]. Guidance and Market Reaction - Management withdrew its existing 2027 guidance, citing currency exchange headwinds and the evolving AI landscape, which led investors to perceive this as a sign of potential business loss to AI competitors [4]. - Following the guidance withdrawal, the stock closed 20.1% lower on that day and maintained a lower level for the remainder of the week [4]. Future Projections - Despite the withdrawal of long-term growth goals, management projects approximately 18% revenue growth and 28% higher adjusted operating profits by 2026, indicating ambitious growth targets [6]. - The company is proactively addressing potential AI challenges by offering its own AI agent platform, which allows clients to integrate multi-step AI tools into their Work OS applications, suggesting that AI could present more opportunities than threats [7].

Core Viewpoint - Monday.com Ltd. (MNDY) is facing a reset in growth expectations, with analysts lowering their price targets ahead of earnings due to weak guidance and concerns about AI disruption in traditional software models [1][2]. Group 1: Analyst Ratings and Price Targets - Canaccord lowered its price target on MNDY to $190 from $230 while maintaining a Buy rating, indicating a cautious approach ahead of earnings [1]. - Baird also reduced its price target for MNDY to $175 from $210, keeping an Outperform rating, reflecting a reset of expectations prior to the earnings report [2]. Group 2: Earnings Guidance and Market Reaction - MNDY's shares dropped approximately 21% following the release of weak guidance, with projected revenue for the upcoming quarter falling short of analyst expectations [2]. - The company projected annual sales between $1.452 billion and $1.462 billion, which is below the consensus projection of $1.48 billion [2]. Group 3: Company Overview - Monday.com Ltd. is an Israeli cloud-based work operating system that offers customizable project and workflow management, collaboration, and productivity software, enhanced by AI tools [3].

Core Viewpoint - monday.com Ltd. is facing significant challenges due to persistent weakness in its "no-touch" performance marketing channel and rising costs associated with AI investments, which have been reflected in its reduced 2026 guidance without prior disclosure of these headwinds [1] Group 1: Financial Guidance and Performance - The company disclosed two main headwinds in its 2026 guidance: ongoing weakness in the no-touch performance marketing channel and a foreign exchange drag of 100–200 basis points due to the appreciation of the Israeli shekel [1] - CFO Eliran Glazer indicated that the 2026 guidance does not anticipate any recovery in performance marketing or top-of-funnel activity, stating it is based on current conditions [1] - The stock experienced a decline of 13–14% on February 9, 2026, contributing to an overall drop of approximately 70% from its 52-week highs [1] Group 2: No-Touch Channel Concerns - The no-touch SMB channel has been a recurring issue, with management previously attributing revenue headwinds to temporary web-traffic softness from Google search algorithm changes, leading to a 26% stock drop in Q2 FY2025 [1] - In Q3 FY2025, a similar guidance miss resulted in a 19% decline in stock value, indicating that the no-touch weakness is now viewed as a structural issue rather than a temporary disruption [1] - Management's acknowledgment of the no-touch channel's persistent weakness raises questions about when they first recognized this shift and whether prior disclosures adequately reflected this evolution [1] Group 3: AI Investment and Profitability - monday.com is increasing its investment in AI products, including Monday Vibe, Monday Sidekick, and Monday Agents, which are expected to require additional spending [1] - The company has guided for a decline in gross margins from 90% to the mid-to-high 80s in FY2026, partly due to AI infrastructure costs [1] - R&D spending increased from 17% to 19% of revenue in FY2025, with management forecasting mid-teens percentage headcount growth in FY2026, primarily in sales and R&D [1] - The early-stage revenue contribution from AI products, such as Monday Vibe reaching $1 million in ARR, represents a small fraction of the company's total annual revenue of $1.2 billion [1]

Core Insights - monday.com Ltd. (NASDAQ:MNDY) is recognized as one of the 10 trending AI stocks, with analysts maintaining a positive outlook despite a reduced price target [1] - DA Davidson analyst Lucky Schreiner has lowered the price target for MNDY from $250.00 to $150.00 while keeping a "Buy" rating, highlighting a disconnect between market pessimism and strong customer satisfaction [1][2] - The firm is adjusting its FY26 estimates due to longer sales cycles and less favorable customer feedback regarding new products, although core product satisfaction remains high [2] Company Performance - Shares of monday.com have declined by 34% year-to-date, driven by concerns that the company may not experience future growth [3] - Despite the decline, the analyst views the current situation as a "straightforward BUY," indicating confidence in the company's potential [3] Product and Market Position - monday.com develops cloud-based software applications for work management, offering a Work OS that facilitates the creation of management tools [3] - Customer interest in building custom solutions as alternatives to monday.com's core product is low, suggesting strong loyalty to the existing offerings [2]

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