New York, January 15, 2026, 07:53 EST — Premarket
- monday.com shares climbed roughly 1% in premarket trading, rebounding from a 6.4% slide the day before.
- Jefferies stuck with its Buy rating, pointing out that the stock’s valuation has tightened compared to its software peers.
- Investors are gearing up for the company’s upcoming earnings report and its initial outlook for 2026.
Shares of monday.com Ltd edged up 0.9% in premarket trading on Thursday, reaching $131.50. The work-management software company had dropped 6.4% in the prior session, closing at $130.33.
On Wednesday, the stock tumbled to an intraday low of $129.99, marking its lowest point in 52 weeks, before stabilizing near the close. The selloff was steep, and now all eyes are on whether dip-buyers step in with enough volume following a week of declines.
Jefferies stuck with its Buy rating and maintained a $260 price target, highlighting a sharp valuation reset following the stock’s drop. The firm noted the stock is trading near 3.5 times enterprise value to sales — a typical metric for software companies comparing firm value (adjusted for cash and debt) against revenue. Jefferies also said it expects the company’s initial fiscal 2026 revenue guidance to come in more cautiously than consensus estimates.
The pressure wasn’t limited to just one area. The iShares Expanded Tech-Software Sector ETF tumbled 2.2% on Wednesday. Meanwhile, Atlassian and Asana each slid over 4%, highlighting the jittery mood in growth software stocks.
monday.com has long traded like a classic growth stock: skepticism around forward guidance or pricing power can trigger sharp sell-offs. On the flip side, the stock tends to rebound quickly if there’s evidence enterprise demand remains strong and margins continue to expand.
Next on the docket: earnings timing and guidance. Nasdaq’s calendar points to a Feb. 9 report, though Investing.com expects Feb. 16. monday.com hasn’t officially announced a date on its investor site yet.
The valuation case holds only if the next outlook doesn’t rattle the market again. D.A. Davidson flagged longer sales cycles and macro uncertainty as threats to software budgets. Another round of cautious guidance could trap the stock near its lows.
The stock’s slump began after the last earnings report. In November, monday.com topped estimates but forecasted fourth-quarter revenue between $328 million and $330 million, falling short of market expectations and dampening enthusiasm.
Jefferies pointed to deal comps in the sector, highlighting last year’s Smartsheet take-private by Blackstone and Vista. That move pulled a close peer off the public market, pushing investors to rely more heavily on the remaining companies for benchmarks.
Traders will be eyeing if the premarket bounce sticks once liquidity ramps up at the open. The next major trigger is monday.com’s quarterly report, along with its initial 2026 targets. That report should reveal if this move marks a bottom or simply a breather.
