monday.com Ltd. (MNDY): A Bull Case Theory

We came across a bullish thesis on monday.com Ltd. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on MNDY. monday.com Ltd.’s share was trading at $181.80 as of August 27th. MNDY’s trailing and forward P/E were 239.21 and 44.84 respectively according to Yahoo Finance.

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Monday.com (MNDY) delivered strong Q2 FY25 results with revenue of $299 million, up 27% year over year and above estimates, while EPS of $1.09 beat expectations by 25%. Gross margin held at 90% and non-GAAP operating margin was 15%, with adjusted free cash flow at $64 million, representing a 21% margin. The company raised full-year guidance to $1.224–$1.229 billion, implying 26% growth, supported by resilient enterprise adoption and product momentum.

Work Management remains the core driver, expanding within large accounts despite softer SMB acquisition from Google search algorithm changes. Monday CRM reached a $100 million ARR milestone in under three years, with average contract value growing 20% as enterprise adoption accelerates. Monday Dev continues to gain traction among SMBs and mid-market clients, while Monday Service saw 45% quarterly growth, benefiting from cross-sell into existing accounts. The company’s AI suite, including Magic, Vibe, and Sidekick, recorded 46 million actions executed, signaling strong demand and future monetization potential.

Monday DB 2.0 further enhances scalability and performance for enterprise deployments, strengthening competitive positioning. Customer growth was robust with record additions of $100K+ customers, up 46% year over year, and $50K+ customers, up 37%. Retention reached an all-time high, driven by enterprise expansions and multi-product adoption.

While net new ARR fell 13% and CAC payback lengthened to 27 months, strategic investments in AI, infrastructure, and go-to-market are expected to sustain mid-20% revenue growth into H2 FY25. With strong execution, expanding enterprise penetration, and AI-led differentiation, Monday.com is positioning itself as a system of action with significant long-term upside.

Previously we covered a bullish thesis on Monday.com Ltd. (MNDY) by Rijnberk InvestInsights in May 2025, which highlighted strong Q4 2024 earnings, 33% revenue growth, record margins, and robust free cash flow. The company’s stock price has depreciated approximately 37% since our coverage as the thesis didn’t play out amid valuation pressures. The thesis still stands as Monday’s enterprise adoption and AI-led strategy support long-term growth. Sergey shares a similar view but emphasizes Q2 FY25 execution.

Monday.com Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held MNDY at the end of the first quarter which was 68 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.

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Disclosure: None.