Monday.com (MNDY) Cuts Jobs For Its AI Pivot, Is The Stock A Bargain?
monday.com (MNDY) has announced a restructuring plan that cuts about 20% of its workforce and refocuses the business on an AI Work Platform, while reiterating full year 2026 revenue guidance.
See our latest analysis for monday.com.
The restructuring news has arrived after a sharp reset in monday.com’s share price, with a 1 year total shareholder return that declined 73.50% and a year to date share price return that declined 46.01%, even as the 90 day share price return of 14.22% points to improving short term momentum.
If this AI shift has you thinking about where else automation and data tools could drive value, it may be worth scanning 65 profitable AI stocks that aren't just burning cash for other candidates with established earnings profiles.
For monday.com, the slide in the share price, alongside reaffirmed revenue guidance and an AI pivot, raises a clear issue for investors: is this reset mainly about sentiment or a more fundamental rethink of what the business is worth?
Most Popular Narrative: 28.4% Undervalued
With monday.com last closing at $77.43 against a narrative fair value of $108.13, the widely followed view sees a meaningful gap to current pricing and ties that gap directly to the AI Work Platform transition.
Rapid integration of generative AI and low code or no code capabilities, for example Monday Magic, Vibe, Sidekick, enable broader automation and workflow customization, strengthening platform differentiation and stickiness, likely improving customer retention, ARPU, and net margins as monetization scales.
Curious what sits behind that confidence in monday.com and its AI Work Platform positioning? The narrative leans heavily on future revenue expansion, margin shape, and a rich earnings multiple to justify that higher fair value path.
Result: Fair Value of $108.13 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, monday.com’s reliance on performance marketing and the execution risk around its AI Work Platform relaunch could still weaken growth and pressure margins if results fall short.
Find out about the key risks to this monday.com narrative.
Next Steps
If this combination of concern and optimism around monday.com leaves you undecided, consider acting quickly and reviewing the full picture of risks and upsides using 3 key rewards and 1 important warning sign
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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