What Happened?
Shares of project management software maker Monday.com (NASDAQ: MNDY) jumped 3.1% in the afternoon session after investment firm Baird upgraded the stock to Outperform from Neutral and raised its price target to $310. The investment firm pointed to the stock's recent decline as a compelling buying opportunity, noting shares had dropped 21% since July. Baird's analysts expressed growing confidence in the company's platform leadership, highlighting its potential to use its position in collaborative work management to deliver value with generative AI. The upgrade also arrived ahead of the company's second-quarter results, which Baird anticipated would be solid.
After the initial pop the shares cooled down to $257.71, up 3.2% from previous close.
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What Is The Market Telling Us
Monday.com’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 3.7% on the news that the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
Monday.com is up 11.5% since the beginning of the year, but at $257.71 per share, it is still trading 21.4% below its 52-week high of $327.92 from February 2025. Investors who bought $1,000 worth of Monday.com’s shares at the IPO in June 2021 would now be looking at an investment worth $1,441.
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