Is monday.com’s (MNDY) AI Spending Power Quietly Redefining Its Competitive Moat?

• In recent days, analysts including BTIG have reiterated positive views on monday.com’s expanding AI-driven work management and CRM platform, underpinned by strong annual recurring revenue growth and high gross margins.
• An interesting angle is how monday.com’s elite software-like gross margin profile and solid free cash flow give it more room to invest aggressively in AI and ecosystem expansion than many peers.
• Now we’ll explore how this renewed analyst optimism around monday.com’s AI-powered growth and strong unit economics may influence its investment narrative.

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monday.com Investment Narrative Recap

To own monday.com, you need to believe its AI-first work management and CRM platform can keep winning customers and expanding wallet share, while high gross margins and free cash flow fund that push efficiently. The recent wave of bullish analyst coverage reinforces the short term catalyst around AI adoption and ecosystem growth, but it does not remove key risks such as slowing SMB customer additions, high sales and marketing spend, and intensifying competition in workflow and low code tools.

The Elevate 2025 product updates look especially relevant here, because they show how monday.com is tying its investment case directly to AI, with monday agents, monday magic, and monday campaigns all aiming to deepen usage and expand into enterprise service and marketing workflows. These launches sit at the heart of the bullish thesis on AI driven growth, but they also raise the bar for execution on cross sell, upmarket expansion, and maintaining pricing power in a crowded category.

Yet beneath the AI excitement, investors should be aware of how much the story now relies on sustaining strong customer additions and ARPU growth...

Read the full narrative on monday.com (it's free!)

monday.com's narrative projects $2.0 billion revenue and $157.5 million earnings by 2028. This requires 22.9% yearly revenue growth and a $117.5 million earnings increase from $40.0 million today.

Uncover how monday.com's forecasts yield a $235.20 fair value, a 60% upside to its current price.

Exploring Other Perspectives

Fourteen Simply Wall St Community valuations cluster between about US$182 and US$320 per share, showing how far apart fair value views can sit. When you weigh that spread against monday.com’s heavy sales and marketing spend and the execution risk in its enterprise and cross sell push, it highlights why many market participants are stress testing several different growth and margin paths before taking a firm view.

Explore 14 other fair value estimates on monday.com - why the stock might be worth just $182.25!

Build Your Own monday.com Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your monday.com research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free monday.com research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate monday.com's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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