MNDY Shares Decline 21% in 6 Months: Should You Buy, Sell or Hold?

Core Viewpoint - monday.com (MNDY) has experienced a significant decline in share price, losing 20.9% over the past six months, which is worse than the broader Zacks Computer and Technology sector and the Zacks Internet - Software industry [1] Group 1: Financial Performance and Outlook - The company's cautious outlook for fiscal 2025 indicates potential headwinds, with expected revenue growth moderating to 24-26%, down from a 33% rise in 2024 [3] - A projected non-GAAP operating margin of 11-12% for 2025 reflects a decline from 14% in the prior year, attributed to increased investments in sales infrastructure [4] - The Zacks Consensus Estimate for 2025 revenues is $1.21 billion, indicating a year-over-year increase of 24.81% [4] - The consensus mark for 2025 earnings is $3.30 per share, reflecting a year-over-year decline of 5.71% [5] Group 2: Strategic Initiatives - monday.com is focusing on AI-driven product innovation, with a strategy centered around AI Blocks, Product Power-ups, and a Digital Workforce to enhance automation and scalability [6] - The introduction of AI Blocks allows users to integrate AI capabilities into workflows, with customers performing approximately 10 million AI actions by the end of 2024 [7] - The Digital Workforce includes AI-powered agents for continuous operation, with the first agent, monday Expert, released in March 2025 [8] - The company has launched monday service, an Enterprise Service Management platform that has resolved over 215,000 tickets, improving efficiency in enterprise IT service [9] Group 3: Market Position and Growth Potential - In 2024, monday.com completed mondayDB 2.0, enhancing its platform's ability to support larger use cases, and grew its largest customer seat count to 80,000 [10] - The company aims to build on its momentum in 2025 by expanding reach, enhancing product capabilities, and leading through innovation in AI and workflow automation [11] - Despite the cautious outlook for 2025, monday.com is well-positioned for long-term success due to its strong momentum in AI-led innovation and growing enterprise adoption [12]