AI Push Fuels Monday.com Stock Surge After Layoffs
Translated & summarized from Globes by baba
Monday.com's stock surged nearly 81% from its April low, driven by the launch of AI agents and a strategic shift towards AI-powered services, despite recent layoffs. The company's stock gained 17.9% last week, closing above $100. Meanwhile, eToro hit an all-time low stock price, and Mobileye also saw its shares fall to a record low amid mixed analyst recommendations. Monday.com is expected to report strong Q3 earnings, while eToro anticipates a revenue decline.
The story in 6 lines · by baba
- Monday.com stock climbed 81.1% from its April low, boosted by AI initiatives.
- The company launched AI voice agents capable of making sales calls and closing deals.
- Monday.com announced a 20% workforce reduction, impacting around 620 employees.
- Co-founder and CEO Amnon Shashua may step down from his CEO role at Mobileye.
- eToro shares closed at an all-time low, with analysts expecting a revenue decrease.
- Mobileye's stock also reached an all-time low following conflicting analyst ratings.
Monday.com's stock has seen a significant recovery, climbing 81.1% since its April low, and gaining 17.9% in the past week to close above $100. The Israeli software company, co-founded by Roi Mann and Eran Zinman, is now valued at $4.5 billion, a stark contrast to its 2021 peak of over $19 billion. This rebound follows a period where the company, perceived as vulnerable to AI advancements, experienced a significant stock drop amid the "SaaS apocalypse."
Last week, Monday.com announced the launch of its AI voice agent platform, designed to handle sales calls and close deals. This initiative aligns with a broader shift in the company's strategy, moving from work management to AI-driven task execution, which also impacts its pricing model. Concurrently, Monday.com implemented a 20% workforce reduction, impacting approximately 620 employees, as part of a restructuring aimed at streamlining management layers and focusing on AI-based products.
Analysts anticipate Monday.com will report a 16.5% revenue increase to $369 million and an 18.1% rise in non-GAAP earnings per share to $1.37 when it releases its third-quarter financial results on November 9. The company's stock had previously fallen due to concerns about AI's impact on its business model.
In contrast, eToro, a trading platform founded by Yoni Assia, closed at an all-time low of $23.92, reflecting a market value of $1.9 billion and a 54% loss since its IPO. Analysts expect eToro's third-quarter revenue to decrease by 12% to $189 million, with earnings per share dropping from 53 cents to 30 cents. Despite recent target price reductions by analysts, the average target price still suggests an 80.7% upside from the current price.
Mobileye, an automotive technology company led by founder and CEO Amnon Shashua, also hit an all-time low, closing at $6.54. The company is set to release its third-quarter earnings on Thursday. Mobileye previously announced Shashua's intention to step down as CEO while remaining on the board, with an offer to become chairman. Analysts have issued mixed recommendations, with some initiating coverage with a "buy" rating and others downgrading to "underperform" due to competitive pressures and market conditions.