What Happened?
Shares of project management software maker Monday.com (NASDAQ: MNDY) fell 5.5% in the afternoon session after stocks pulled back (Nasdaq -1.5%, S&P 500 -1.2%) amid fresh concerns about trade tariffs. The pullback followed comments from President Trump clarifying the scope of his administration's 25% tariffs on Venezuela. He noted that it would apply to any country that does business with Venezuela. For example, 25% is on top of the already-in-place 20% tariff on China because China imports oil from Venezuela, which could translate to a 45% tariff on some Chinese goods. This announcement could significantly raise the operating costs for affected companies and institutions.
Adding to the market unease, the President announced plans for new tariffs on auto imports before the planned "reciprocal" tariffs on April 2, 2025.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Monday.com? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Monday.com’s shares are very volatile and have had 26 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 biggest move we wrote about over the last year was about 1 month ago when the stock gained 31.4% on the news that the company reported impressive fourth-quarter 2024 results that blew past Wall Street's expectations for some of the key metrics we track, including sales, profits, and EPS (profits on a per-share basis).
Notably, net revenue retention expanded to 115% from 111% last quarter, which meant the business was retaining and upselling customers at an improved rate. The company added Digital Workforce, a team of AI agents, to its lineup of AI solutions, which includes AI Blocks and Product Power-ups. During the last earnings call, the company discussed the accelerating adoption of these AI solutions.
Looking ahead, its revenue guidance for the next year also exceeded expectations. Overall, this was a strong quarter.
Monday.com is up 13.8% since the beginning of the year, but at $262.92 per share, it is still trading 19.8% 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 $1,470.
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