Aug. 21 at 7:29 PM
Bank of America downgraded Monday. com to Neutral from Buy, citing risks from Google’s AI Overviews eroding web traffic and threatening its self-service model. SEO-driven visits to Monday. com fell 23.5% YoY in Q2 and 25.3% in July, according to Similarweb .
With under 30% of sign-ups from Google, BofA’s analysis suggests growth pressure even after a 30% stock drop post-Q2. The broker cut its PT to
$205 from
$240 and lowered 2026 revenue estimates, warning of a “material reversal” in self-service growth.
BofA projects gross self-service ARR, up 29% in 2024, shrank 7% in Q2 and could decline over 5% by 2026 if traffic trends persist. The shifting search landscape poses challenges ahead of Monday. com’s Sept. 17 analyst day, with reduced odds of bullish financial targets.
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