Is monday.com Ltd. (MNDY) A Good Stock To Buy Now?

Is MNDY a good stock to buy? We came across a bullish thesis on monday.com Ltd. on r/ValueInvesting by Last-Cat-7894. In this article, we will summarize the bulls’ thesis on MNDY. monday.com Ltd.'s share was trading at $67.86 as of April 21st. MNDY’s trailing and forward P/E were 30.25 and 17.36 respectively according to Yahoo Finance.

Monday.com is a collaboration and productivity software company operating in a competitive, increasingly AI-disrupted SaaS landscape where differentiation is driven more by execution, go-to-market strength, and usability than by a wide moat. While not mission critical and exposed to AI-enabled replication risk, Monday.com has shown that enterprise software success depends on execution, sales efficiency, and product-led adoption rather than pure defensibility.

The company has captured meaningful market share through strong sales execution and platform design, delivering growth that has outpaced many peers. The stock selloff followed FY26 revenue guidance deceleration to about 20%, signaling moderation from prior hypergrowth. However, this has created a valuation gap, with EV/fwd sales near 1.7 despite ~90% gross margins and strong cash generation. On a trailing basis, it trades at ~18x EV/FCF ex SBC, which looks undemanding given growth and a cash-rich balance sheet.

The market is pricing in normalized growth and limited reacceleration, but even 5–10% revenue growth plus modest operating leverage drives expanding earnings power. This creates favorable asymmetry, with downside cushioned by profitability and upside driven by margin expansion and durable growth. As sentiment normalizes, Monday.com could re-rate as investors reassess its compounding potential in enterprise SaaS despite AI competition concerns.

Overall, Monday.com presents a compelling risk-reward setup where short-term growth deceleration has driven valuation to levels that underappreciate its durable customer base, strong unit economics, and ability to compound steadily in a consolidating SaaS market, with potential for meaningful rerating as profitability scales and sentiment stabilizes over the medium term.

Previously, we covered a bullish thesis on monday.com Ltd. (MNDY) by @bigbullcap in May 2025 which highlighted strong earnings, enterprise adoption, and resilient growth. MNDY’s stock price has depreciated by approximately 76.48% since our coverage. Last-Cat-7894 shares a similar view but emphasizes valuation compression after FY26 guidance deceleration and AI-driven SaaS disruption, focusing on re-rating via operating leverage and margin expansion.

Monday.com Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held MNDY at the end of the fourth quarter which was 55 in the previous quarter. While we acknowledge the risk and potential of MNDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MNDY and that has 10,000% upside potential, check out our report about this cheapest AI stock.