Why Monday.com Stock Collapsed 51% In The First Half of 2026

Monday.com (MNDY) plunged 50.9% in the first half of 2026 as investors priced in existential risk from AI coding agents threatening to disrupt the company's workflow platform business model.

The selloff drove the stock's price-to-sales ratio down to 3.3, a sharp compression from prior multiples. Yet the company's operational performance remains robust: revenue climbed 24% year-over-year, enterprise customer count surged 74%, and profitability metrics improved during the period.

The disconnect between deteriorating sentiment and accelerating fundamentals creates a potential setup for contrarian investors. The AI coding agent narrative—centered on the possibility that automated tools could reduce demand for workflow management software—has yet to materialize in Monday.com's reported numbers. The 74% jump in enterprise customers suggests large organizations continue to adopt the platform despite theoretical competitive threats.

The 3.3 P/S ratio represents a meaningful valuation reset. If AI disruption fears prove premature or overestimated, the current multiple could mark a tactical entry point for traders willing to bet against the prevailing narrative.