Why Is MONDAY COM LTD (MNDY) Stock Down Today?

Monday.com (MNDY) shares fell 9.10% to $79.93, driven by a guidance miss and a downgrade from Needham following the company’s third-quarter results. The stock declined after the software firm reported revenue of $378 million, up 19% year-over-year, but signaled that growth would slow due to headwinds in the small and medium business segment.

What Happened

Needham downgraded Monday.com to Hold, citing disappointing Q3 sales. The company reported record margins and adjusted earnings per share of $2.14, which exceeded estimates, yet the market focused on the decelerating growth trajectory. Net Dollar Retention stood at 108%, with modest short-term pressure expected for the remainder of the fiscal year. Other analysts, including Loop Capital and Canaccord Genuity, also moved the stock to Hold and lowered their price targets to $90. The company’s shift toward upmarket enterprise clients is trading near-term SMB churn for deeper enterprise ties, a strategy that is currently weighing on the stock.

What The Data Shows

The stock has moved 10.1% lower over the last eight sessions, falling from $97.82 to $87.93 before today’s drop. Monday.com’s market cap stands at $3.7 billion with a P/E ratio of 36.3 and a TTM revenue growth rate of 24.2%. The 52-week range spans from $57.50 to $190.72, and the stock printed fresh 52-week lows on November 9, 2026. Unusual options activity showed $2.1 million in put premium versus no call premium, indicating bearish positioning. Insider activity has been exclusively selling, with four sales totaling $539,000 in the last 90 days, including recent transactions by Director Eyal Aviad and CRO George James Case.

What To Watch

Investors will monitor how the company manages the transition to enterprise clients and whether the SMB segment stabilizes. The recent downgrade and lowered price targets suggest that the market is pricing in slower growth, making future guidance updates critical for the stock’s trajectory.