Monday.com’s Stock Lower Pre Market: Price Target Slashed on AI Fears

Monday.com's stock price (MNDY) is 2.4% lower this pre-market, after Jefferies downgraded the work management software provider to Hold from Buy, slashing its price target from $260 to $80. This marks a rather dramatic 69% reduction that signals mounting concerns about artificial intelligence disruption across the application software sector.

The downgrade, issued by Jefferies analyst Brent Thill, comes as part of a broader reassessment of software stocks facing heightened AI-related risks. Thill cited a “hazy outlook” in both Monday.com's small business and enterprise segments, highlighting the need for more meaningful growth acceleration to alleviate fears that AI-driven tools could disrupt the company's core business model.

The application software segment has experienced particularly acute pressure in recent months, with stocks in this category declining more sharply than the broader software sector.

Jefferies downgraded four names in the space, including Monday.com, DocuSign, Workday, and Freshworks, as part of what the firm describes as a new AI risk framework designed to identify companies most vulnerable to disruption from generative AI technologies.

For Monday.com specifically, the concerns center on whether the company can sustain its growth trajectory as AI-powered alternatives emerge in the project management and workflow automation space. While 2026 is expected to be a year of gradual AI monetization for many software providers, Thill emphasized that Monday.com needs to demonstrate significant growth acceleration to address mounting concerns about its competitive positioning.

The downgrade represents a stark reversal from Jefferies' previous stance. As recently as January 2026, the firm maintained a Buy rating on Monday.com, though it had already begun trimming its price target from $300 to $260. At that time, Jefferies highlighted the stock's undervaluation compared to peers and expressed confidence in the company's ability to sustain over 20% annual revenue growth.

Markets have grown increasingly concerned about which software companies will emerge as winners and losers in the AI transition. Jefferies identified several vendors it believes are better positioned for this shift, including Intuit, Procore, Atlassian, and Salesforce, citing more durable business models and internal AI adoption that supports growth confidence.