Monday.com (MNDY) Falls on Disappointing Guidance and Smaller-Than-Expected Earnings Beat

Core Insights - Monday.com Ltd. is considered one of the best upside stocks to buy currently, despite a recent price target reduction by Morgan Stanley from $260 to $236 while maintaining an Overweight rating [1] - The company's Q3 2025 earnings showed a total revenue of $317 million, a 26% year-over-year increase, with net income at $61.9 million, translating to a diluted net income per share of $1.16 [2] - The Q4 2025 revenue guidance is projected between $328 to $330 million, indicating a year-over-year growth of 22% to 23%, while the full year 2025 revenue guidance is set at $1.226 to $1.228 billion, representing approximately 26% growth year-over-year [3] Financial Performance - In Q3 2025, Monday.com reported total revenue of $317 million, marking a 26% increase compared to the previous year [2] - The net income for the same quarter was $61.9 million, resulting in a diluted net income per share of $1.16 [2] - The company has set its Q4 2025 revenue guidance at $328 to $330 million, reflecting a year-over-year growth of 22% to 23% [3] Strategic Focus - Monday.com is shifting its investments towards higher ROI areas, such as direct sales and new products, which may have longer sales cycles but are showing positive momentum [3] - The company is focusing on multi-product solutions and generating more revenue from larger customers as part of its long-term investment strategy [2]