If you think AI is the death knell for software stocks, then monday.com (NASDAQ: MNDY) isn’t the stock for you. Its software-as-a-service business is ripe for disruption, setting it up for a slow implosion already priced into the market. However, if you think AI’s disruptive power is overstated, then the sell-off of monday.com is overblown, and an opportunity is arising.
While AI is a disruptive force in the market, the company's Q4 results and guidance show that monday.com remains in high demand. Even in the unlikely event that AI disrupts and puts traditional SaaS out of business, it won't happen for years. The more likely scenario is that cloud-based SaaS companies like monday.com will continue advancing technology, build partnerships with leading models, improve ecosystem compatibility, and remain a driving force in business economics. The environment will shift and evolve, and leaders like monday.com are well-positioned to benefit.
