monday.com(US:MNDY) TMX Newsfile·2026-03-27 13:29Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Monday.com Ltd. due to allegations of false and misleading statements regarding the company's revenue growth and performance, with a deadline for investors to seek lead plaintiff status in a federal securities class action by May 11, 2026 [2][5]. Company Performance - Monday.com disclosed on its February 9, 2026 earnings call that it is facing two significant challenges: ongoing weakness in its "no-touch" performance marketing channel for small and medium businesses and a foreign exchange drag of 100-200 basis points due to the appreciation of the Israeli shekel [6]. - The company is increasing its investment in AI products, which includes Monday Vibe, Monday Sidekick, and Monday Agents, leading to a projected decline in gross margins from 90% to the mid-to-high 80s for FY2026, primarily due to AI infrastructure costs [6]. - Research and Development (R&D) spending increased from 17% to 19% of revenue in FY2025, with management forecasting mid-teens percentage headcount growth in FY2026, particularly in sales and R&D [6]. Stock Market Reaction - Following the earnings call, Monday.com's stock price fell by $20.37, or 20.78%, closing at $77.63 per share on February 9, 2026, reflecting investor concerns over the company's growth outlook and profitability [7].