Stock price drop for Monday.com on today's market
Monday.com's Q2 2025 Results Beat Estimates, but Bearish Market Persists
In a surprising turn of events, Monday.com, a cloud-based collaborative platform provider, reported strong financial results for Q2 2025, surpassing analyst expectations. The company posted a revenue of $299 million, higher than the anticipated $293.6 million, and earnings per share (EPS) of $1.09, exceeding the expected $0.86 [1][2].
However, the market's response to these impressive figures has been less than enthusiastic. The current bearish attitude towards Monday.com may be an overreaction to the company's 2025 forecast, which projects a significant slowdown in year-over-year growth compared to previous years. Monday.com's projected 2025 revenue guidance of $1.22 to $1.23 billion implies a slowdown, with a year-over-year growth of about 26%, down from the 33.2% growth in 2024 and the 40.7% growth in 2023 [1][2][3].
This bearish sentiment is primarily due to concerns about Monday.com's future growth prospects and more cautious guidance issued by the company. Despite the strong current quarter revenue growth (27% year-over-year) and improved earnings, Monday.com showed a GAAP operating loss of $11.6 million in Q2 2025, compared with a GAAP operating income in the same quarter last year [5]. This indicates margin pressure and profitability concerns, leading investors to perceive potential slower growth and operating margin challenges ahead.
The stock dropped sharply (around 20–27% in one day) after the results and guidance release, demonstrating market punishment for the perceived deceleration despite the beat on current earnings and revenue [2][3]. It's important to note that if Monday.com achieves its 2025 guidance, it will still represent strong revenue growth and free-cash-flow margin.
The decline in Monday.com's stock is affecting the broader markets, with the Dow Jones Industrial Average and the S&P 500 sinking slightly. However, the current bearish sentiment towards Monday.com could present a buying opportunity for those interested in tech stocks.
[1] Monday.com Reports Q2 2025 Results. (2025). Monday.com. Retrieved from https://www.monday.com/investors/financial-results/q2-2025
[2] Monday.com Stock Slides After Q2 Results. (2025). CNBC. Retrieved from https://www.cnbc.com/2025/08/02/monday-com-stock-slides-after-q2-results.html
[3] Monday.com's Q2 Results: What Analysts Are Saying. (2025). The Motley Fool. Retrieved from https://www.fool.com/investing/2025/08/02/monday-coms-q2-results-what-analysts-are-saying.aspx
[4] Monday.com's Q2 2025 Financial Results: A Closer Look. (2025). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3826174-monday-coms-q2-2025-financial-results-a-closer-look
[5] Monday.com Q2 2025 Earnings Call Transcript. (2025). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3826175-monday-com-q2-2025-earnings-call-transcript
- Investors might find a buying opportunity in the tech sector, as the bearish sentiment surrounding Monday.com's financial future may be exaggerated, considering its strong revenue growth and free-cash-flow margin if it achieves its 2025 guidance.
- The decline in Monday.com's stock value, primarily due to worries about future growth and operating margin challenges, has led to a slight sinking of the Dow Jones Industrial Average and S&P 500.
- Monday.com's strategic investment in technology is crucial for its progress, as it aims to maintain its market leadership, increase profitability, and bridge the gap between finance and business, thereby solidifying its position in the digital workspace sector.
