Monday.com Stock Plummets Despite Strong Q2 Report

Core Viewpoint - Shares of Monday.com Ltd experienced a significant decline despite reporting strong second-quarter earnings and raising full-year guidance, indicating market concerns over external factors impacting performance [1][2]. Financial Performance - Monday.com reported second-quarter earnings of $1.09 per share on revenue of $299 million, surpassing expectations [1]. - The company raised its full-year guidance, reflecting confidence in its growth prospects [1]. Market Reaction - The stock price fell by 26.4% to $182.55, marking its worst single-day drop since February 2022 [2]. - Year-to-date, shares are down 22.5%, reversing a previous surge of nearly 30% earlier in the year following a strong fourth-quarter report [2]. Analyst Sentiment - Among 24 firms covering the stock, 22 rated it a "buy" or better, indicating overall positive sentiment [3]. - However, options traders have shown increased bearish sentiment, as evidenced by a high put/call volume ratio [3]. Options Activity - Options trading volume is significantly elevated, running at 40 times the intraday average, with over 9,000 calls and 7,000 puts traded [4]. - The August 180 call option is the most popular, with new positions being opened [4].