Monday.com Plummets 5.14% on Analyst Downgrades and Strategic Shift to AI-Driven Automation Traded $250M as 446th Most Active Stock

On October 7, 2025, monday.com (MNDY) closed down 5.14% with a trading volume of $0.25 billion, ranking 446th in market activity for the day. The decline followed a series of analyst updates highlighting evolving market dynamics in the productivity software sector.

Recent filings revealed a strategic shift in R&D priorities toward AI-driven workflow automation, a move analysts suggest could delay near-term revenue visibility. Institutional investors appeared cautious, with notable outflows from two major hedge funds during the week. The stock's volatility also coincided with broader sector underperformance as macroeconomic data fueled risk-off sentiment.

Short-term technical indicators showed bearish divergence across multiple timeframes, with the 20-day moving average crossing below key support levels. Market participants noted increased put option activity in the October cycle, reflecting heightened downside expectations. The decline occurred despite the company's recent announcement of expanded enterprise client onboarding, which analysts said lags behind competitive offerings.

To run a rigorous back-test I'll need to clarify (or help you decide) a few practical details: 1. Universe • Which market(s) should be screened each day – e.g. all U.S. listed common stocks (NYSE + NASDAQ + AMEX), only S&P 500 constituents, or another universe? 2. Weighting & rebalancing convention • Should the 500 names be held in equal-weight each day, or size-weighted (e.g. by dollar volume or free-float m-cap)? • Rebalance frequency is daily (buy today, liquidate tomorrow) – please confirm no fractional-day holding rules. 3. Transaction costs / slippage • If you’d like realistic trading P&L, indicate per-trade costs (bps, fixed dollar, etc.). Otherwise I will use frictionless execution. 4. Benchmark (optional) • Specify a benchmark (SPY, equal-weighted universe, etc.) for excess-return comparison, or omit if not required. 5. Data coverage • My back-testing engine requires daily OHLCV data for every constituent. If you have any preferred data provider or ticker exclusions, let me know. Once I have this information I can retrieve the volume data, generate the daily top-500 lists, execute the 1-day holding strategy from 2022-01-01 to the present, and return full performance metrics and an interactive P&L chart.