What Happened?
A number of stocks fell in the morning session after a broad sell-off swept through the software sector, driven by growing concerns about the impact of artificial intelligence. This led to institutional repositioning as traders pivot away from traditional SaaS providers in favor of companies with more defensible, AI-integrated moats. The tech-heavy Nasdaq Composite index declined by 0.8%, while the broader S&P 500 also slipped.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Project Management Software company monday.com (NASDAQ: MNDY) fell 7.6%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
- Data Analytics company Samsara (NYSE: IOT) fell 7.5%. Is now the time to buy Samsara? Access our full analysis report here, it’s free.
- Cloud Monitoring company Nutanix (NASDAQ: NTNX) fell 7%. Is now the time to buy Nutanix? Access our full analysis report here, it’s free.
Zooming In On monday.com (MNDY)
monday.com’s shares are very volatile and have had 24 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 19 days ago when the stock gained 4.3% on the news that positive analyst ratings affirmed confidence in the company's outlook. BTIG analyst Allan Verkhovski reiterated a 'Buy' rating and maintained a price target of $210. In a similar show of support, Jefferies analyst Brent Thill also maintained a 'Buy' rating on the stock with a price target of $260 per share. The positive sentiment appeared widespread, as reports indicated that all eight Top Analysts covering the stock in the previous three months had rated it a 'Buy'. A broader consensus from 22 analysts also supported a 'Buy' rating for the company, reflecting strong confidence from market watchers.
monday.com is down 29% since the beginning of the year, and at $101.85 per share, it is trading 68.9% 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 $569.40.
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