DA Davidson Lowers Monday.com Target Amid Google Search Algorithm Changes

DA Davidson analyst Lucky Schreiner lowered the price target on monday.com (MNDY) to $275 (from $325) due to weakness in net new demand from small and medium-sized businesses caused by changes to Google's Search algorithm. Despite this, DA Davidson maintains a "Buy" rating on the stock. The company develops cloud-based work management tools.

DA Davidson analyst Lucky Schreiner has lowered the price target for monday.com (MNDY) to $275 from $325, citing weakness in net new demand from small and medium-sized businesses (SMBs) due to changes in Google's Search algorithm. Despite this adjustment, DA Davidson maintains a "Buy" rating on the stock [1].

The stock has declined significantly, falling over 30% in the past week and currently trading near its 52-week low of $173.20. The company reported a "solid quarter," though with a "slightly lower than typical beat" compared to previous performance periods [1]. The company raised its guidance following the results, but the increase was less substantial than the size of the quarterly beat, according to the research note.

DA Davidson characterized the market’s reaction to monday.com’s results as "excessive," while expressing continued optimism about the company’s "multi-product opportunity" and strategic efforts to move upmarket to larger enterprise customers. The company maintains a strong financial position with more cash than debt on its balance sheet and analysts expect continued profitability this year [1].

In other recent news, monday.com Ltd. reported its second-quarter financial results for 2025, which showed solid performance; however, revenue guidance for the third quarter and full year did not meet expectations. The company faced challenges in the SMB segment, leading to higher customer acquisition costs and a $3 million reduction in second-half revenue projections [1].

Goldman Sachs has maintained its Buy rating on Monday.com Ltd. (NASDAQ: MNDY) while lowering its price target to $270. The investment bank cited recent developments and market conditions to justify the adjustment. Despite the price target reduction, Goldman Sachs remains optimistic about the company's long-term prospects [3].

Monday.com has been making strides in innovation by launching three new AI capabilities designed to improve productivity and workflow creation. These features include monday magic, monday vibe, and monday sidekick, which aim to streamline operations for users. The company's recent quarterly earnings report showed solid performance, with earnings per share of $1.09 exceeding the estimated $0.84 in Q2 2025 [3].

Despite these challenges, monday.com has seen retail sentiment toward the stock improve to 'extremely bullish' from 'bullish' territory the previous day amid 'extremely high' message volume levels on Stocktwits [2]. The company's second-quarter (Q2) revenue increased 27% year-on-year (YoY) to $299 million, beating the analysts’ consensus estimate of $293.5 million [2].

Reference List:
[1] https://uk.investing.com/news/analyst-ratings/da-davidson-lowers-mondaycom-stock-price-target-to-275-on-smb-weakness-93CH-4214322
[2] https://stocktwits.com/news-articles/markets/equity/black-monday-for-monday-dot-com-stock/chruzItRdeT
[3] https://www.ainvest.com/news/goldman-sachs-maintains-buy-rating-monday-lowers-pt-2508/