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 $126.15 as of January 28th. MNDY’s trailing and forward P/E were 102.50 and 24.10 respectively according to Yahoo Finance.

monday.com Ltd., together with its subsidiaries, develops software applications in the United States and internationally. MNDY delivered a strong Q3 FY25, reporting $316.9 million in revenue, up 26.3% year-over-year and 6.0% quarter-over-quarter, slightly above estimates. Non-GAAP EPS of $1.16 exceeded expectations by 30%, supported by a 15% operating margin and a 4.1% net margin, reflecting disciplined expense management despite elevated hiring and investment in innovation.

Adjusted free cash flow reached $92.3 million, representing a 29% margin, while the balance sheet remained robust with $1.53 billion in cash and $211.7 million in securities. Net dollar retention remained healthy at 111%, with top-tier customers showing 117% retention, and the enterprise base continued to scale, including 3,993 $50k+ accounts, 1,603 $100k+ accounts, and 78 $500k+ accounts, highlighting strong upsell and expansion. Annual recurring revenue and remaining performance obligations both grew meaningfully, underscoring durable contract strength.

Product innovation is accelerating Monday’s evolution from work tracking to a multi-product AI-powered work operating system. Monday Vibe enabled creation of over 60,000 custom apps, while new modules like Monday Campaigns, Agent Factory, and AI Magic embed automation and intelligence across workflows. CRM surpassed $100 million ARR in under two years, and Service exceeded benchmarks, demonstrating growing enterprise adoption. AI-driven features differentiate the platform from competitors through deep integration with workflow and data context, positioning MNDY to expand monetization over time.

Management highlighted near-term softness from rebalanced go-to-market investments and longer enterprise sales cycles, with Q4 guidance of $328–$330 million slightly below consensus. FY25 revenue guidance of $1.226–$1.228 billion remains on track, and leadership expects up-market expansion, multi-product adoption, and AI engagement to drive revenue toward $1.8 billion by FY27. Monday.com combines accelerating customer growth, record profitability, and AI innovation, offering a compelling risk/reward profile with long-term growth potential.

Previously, we covered a bullish thesis on monday.com Ltd. (MNDY) by Rijnberk InvestInsights in February 2025, highlighting strong Q4 2024 earnings, 33% revenue growth, record margins, robust free cash flow, and rising enterprise adoption. MNDY’s stock price has depreciated by approximately 56.28% since then. Sergey shares a similar thesis but emphasizes Q3 FY25 results, AI expansion, and accelerating enterprise growth.

Monday.com Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held MNDY at the end of the third quarter which was 67 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.