Most people dread Mondays; this one sells them.
The pitch is a work hub that pulls tasks, projects, and teams into one place so companies stop drowning in email and spreadsheets.
The stock’s been knocked around on softer guidance, but the core idea is simple: more teams standardize on the platform, more recurring dollars show up.
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Strategic Positioning
monday.com (NASDAQ: MNDY) builds a cloud platform where teams run their projects, sales pipelines, marketing campaigns, IT tickets, and every random spreadsheet someone tried to turn into a process.
Think of it as Lego for workflows: boards, automations, dashboards, and now AI helpers that teams can snap together for whatever they do.
Why that matters to you:
The world still runs on messy spreadsheets, email threads, and “did you see my message?” drama. This platform sells the upgrade.
It’s not just tiny startups anymore. Bigger companies are signing six-figure annual contracts to run serious, mission-critical work on it.
The product lineup keeps expanding into CRM, dev, support, and marketing, so once a company plugs in for one use case, it’s easy to spread into others.
You’re basically looking at a work tool that wants to become the default home screen for how teams get stuff done.
Recent Momentum
The latest quarter was a classic numbers good, vibes mixed situation.
On the good side:
Revenue grew about 26% year over year to roughly $317 million.
Earnings per share comfortably beat expectations, showing it can grow and stay profitable at the same time.
Bookings, bigger customers, and six-figure accounts all kept moving in the right direction.
On the grumpy side:
Management’s forecast for next quarter’s revenue came in a bit below what analysts wanted.
Sales cycles are getting longer as the company leans harder into larger, slower-moving enterprise deals.
Some investors heard longer sales cycles and immediately pressed the sell first, think later button.
Result: the stock is now down more than a third year to date and almost half from the highs, even though the three-year return is still solidly positive.
This is what a growth-stock mood swing looks like.
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What You’re Betting On
If you buy MNDY here, you’re not just betting on remote work is a thing. You’re betting that:
Teams won’t go back to managing work in 47 separate apps.
Once a company standardizes on a single system for projects and workflows, inertia works in the platform’s favor. Ripping it out is painful and expensive.Bigger customers become the main course.
More large organizations are signing big, multi-product deals. That can smooth out growth and make revenue more predictable over time, even if each deal takes longer to land.New products and AI features keep people hooked.
As the platform learns to automate busywork, surface insights, and connect more departments, it becomes harder for teams to imagine going back to email and spreadsheets.
In short, you’re betting this doesn’t stay just another app, but graduates into essential infrastructure for how modern companies organize themselves.
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Valuation Check
Here’s the awkward part. Even after a big drop, MNDY is not some bargain-bin special.
The stock still trades at a very high earnings multiple compared with average software names.
Some fair-value models say it’s materially undervalued versus its long-term potential, but those models assume years of strong growth and steadily rising profits.
So which is it: cheap or expensive? The honest answer is it depends on your patience.
If growth stays in the 20%+ range and margins keep improving, today’s valuation can make sense in hindsight.
If growth slows sharply or competition bites harder than expected, the market could decide it still paid too much and compress the multiple further.
You’re not getting a sleepy value stock.
You’re getting a high-expectation growth story that just had those expectations knocked down a notch.
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Action Plan
Let’s keep it simple so you don’t need a project board to manage one ticker.
Starter position
After a 35–40% slide, a small starter position can make sense if you’re comfortable with volatility and like the long-term own the work hub story.Average in, don’t all-in
Treat this like a series of check-ins, not a one-shot decision. Add gradually on further weakness or after strong quarters, rather than throwing all your capital in at once.Position size
For most investors, something in the 0.5%–1.5% range of your stock portfolio is plenty. This is a spicy side dish, not the main course.Time horizon
Think three to five years, not three to five months. You’re giving the company time to land more big clients, roll out new products, and prove it can grow upmarket without losing its scrappy energy.
Catalysts To Watch
If you’re going to own this, you don’t need to read every slide deck, but you should watch a few key things:
Revenue growth staying in the 20%+ zone. That tells you demand is still solid even as the company matures.
Larger customers growing as a share of total business. More six-figure accounts means a stickier, higher-quality revenue base.
Profit and cash trends. As long as profits and free cash flow keep improving alongside growth, the overvalued argument gets weaker.
Product launches and AI features that actually land. New tools should show up in customer wins and expansions, not just marketing copy.
Big partnerships and logos. Deals with high-profile organizations, like global sports teams or big brands, can boost awareness and help the sales team open more doors.
If those boxes keep getting checked, the narrative stays intact even while the stock price wobbles.
Risks
You still need to respect what could go sideways:
Valuation reset isn’t done. If the market decides it wants lower multiples for growth software across the board, MNDY can get dragged down again even with decent results.
Competition is loud. Other work platforms, project tools, and big software suites all want to be home base for teams. Losing deals or seeing slower customer additions would sting.
Sales cycles drag out. Moving upmarket is great, until deals slip quarter to quarter and growth looks lumpy and unpredictable.
Dependence on marketing. If online ads and lead generation get more expensive or less effective, new customer growth could slow faster than expected.
None of these are automatic deal-breakers, but they’re the dashboard lights you watch if you own the stock.
What A Win Looks Like
A realistic this worked outcome over the next few years looks something like:
Revenue keeps growing comfortably in the 20% range most years.
Profit margins tick higher as the business scales and spends more efficiently.
Big enterprise customers become a much larger slice of the pie, with more multi-product deals.
The platform’s AI and new modules become must-have features, not nice-to-have add-ons.
The valuation cools from nosebleed to expensive but understandable, while the stock grinds higher anyway because earnings catch up.
If that’s how things play out, buying after a painful pullback will look less like catching a falling knife and more like catching a moody growth name during a tantrum.
Final Take
This isn’t a sleepy dividend stock. It’s a colorful, slightly chaotic work platform that decided to grow up, make real money, and then got slapped for not promising the moon every quarter.
If you want boring, look elsewhere. If you’re comfortable with some drama in exchange for a shot at long-term growth, a small, patient position in MNDY after this reset could make sense.
Just don’t check the price every Monday morning. That’s bad for both your mood and your investment process.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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