Is MNDY a good stock to buy? We came across a bullish thesis on monday.com Ltd. on Elliot’s Musings’s Substack by Elliot. In this article, we will summarize the bulls’ thesis on MNDY. monday.com Ltd.’s share was trading at $79.77 as of July 2nd. MNDY’s trailing and forward P/E were 33.28 and 16.53 respectively according to Yahoo Finance.
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monday.com Ltd., together with its subsidiaries, develops software applications in the United States and internationally. MNDY delivered a decisive Q1 2026 that strengthened the investment case by resolving concerns around slowing growth, AI monetization, and profitability. Revenue grew 24%, operating margin reached a record 14% despite a 190-basis-point foreign exchange headwind, and free cash flow margin remained a robust 29%, while management raised full-year revenue and margin guidance after previously taking a conservative stance.
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The quarter also marked the first meaningful proof that AI is becoming a revenue driver, with 10% of net new ARR generated from the newly introduced seats-plus-credits pricing model, demonstrating customers are willing to pay for AI consumption in addition to subscription seats. Management reinforced confidence by deploying $553 million to repurchase roughly 10% of outstanding shares near cyclical valuation lows, signaling strong conviction in the company’s long-term prospects.
Beyond near-term execution, mondayDB 3.0 and the OneAI acquisition strengthen its unified enterprise platform, increasing switching costs, expanding AI capabilities, and positioning the company beyond project management into a broader AI work platform competing across enterprise workflow software. Despite these improvements, the shares continue to trade at only about 1.9x forward EV/revenue, a valuation that reflects expectations of structural deceleration rather than an AI platform entering a new monetization phase.
If AI credit adoption continues to expand, net dollar retention improves toward 113-115%, and management restores longer-term growth targets, the company could justify a re-rating toward 3.5x-4.5x EV/revenue, implying a share price of approximately $140-$175, representing roughly 80-120% upside over the next 18 months.
Even if adoption progresses more gradually, strong cash generation, expanding margins, and disciplined capital allocation provide meaningful downside support while leaving substantial room for multiple expansion as execution continues.
Previously, we covered a bullish thesis on monday.com Ltd. (MNDY) by Rijnberk InvestInsights in May 2025, which highlighted strong Q4 2024 earnings, expanding enterprise adoption, rising margins, and robust free cash flow. MNDY’s stock price has depreciated by approximately 72.35% since our coverage. Elliot shares a similar view but emphasizes on AI monetization, margin expansion, and valuation re-rating potential following Q1 2026.
Monday.com Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held MNDY at the end of the first quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of MNDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MNDY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
