Monday Stock Drops 22%: Q4 Earnings Report Cuts $6B Market Cap

Monday.com (NASDAQ:MNDY) , the Tel Aviv‑born work OS disrupting legacy tools like Asana and Trello, imploded 22% Monday to $312.45 (down $88.55 from $401), vaporizing $6B market cap in a single session. The rout capped an 8th straight day of SaaS pain amid Amazon's $200B AI capex bombshell and Challenger's +10,340 January layoffs report, dragging Nasdaq Composite -1.6%. Volume rocketed to 15.2M shares (12x 1.3M avg), with $3.1B traded as shorts piled in. Q4 Miss Sparks Panic: The Numbers Exposed Post‑market Friday guidance gutted Q4 revenue to $328-330M (+28% YoY) vs. $334.3M Street expectations – first miss since 2021 IPO, and flagged sequential decline from Q3's $341M. FY25 total $1.268B (+32%) underwhelmed too, with operating margin slipping to 11% on R&D surge ($285M, up 45%). Net retention dipped to 118% (from 122%), churn edged to 1.3%, signaling enterprise budget fatigue.​ Analysts slashed PTs: Piper Sandler $380 → $350, Wolfe $450 → $410. Implied vol spiked to 85%. SaaS Sector Carnage: MNDY Leads the Slaughter Monday's bloodbath engulfed peers: ServiceNow (NOW) -7.6% to $1,010, HubSpot (HUBS) -4.2%, Salesforce (CRM) -4.8%, Workday (WDAY) -5.1%; IT sector -2.9%, worst since March 2025 tariff scare. Blame AI hype deflation: enterprises question $100K+ ROI on productivity suites amid headcount cuts. Unicorn Trajectory Meets Reality Check 4.1M paid accounts (+43% YoY), $1.1B ARR fueled by Enterprise tier (62% growth) and Monday AI (50K users, 30% workflows automated). Strengths: 90% gross margins, 40% FCF margin target, $1.5B cash (no debt). Weaknesses: US saturation (25% SAM), AI rivals (Notion AI, ClickUp), macro churn from SMBs. CEO Roy Mann's ”efficiency era” vows $100M cuts, 25% op margins FY27, but valuation at 12x FY26 sales (down from 25x) screams caution after 2025's 150% tear. Technical Carnage: $300 or Bust? Monday gapped below $330 key support in textbook death cross (50DMA under 200DMA); RSI 25 (extreme oversold), but MACD histogram plunging. Fibonacci targets $300, then $265 crash low. Reclaim $320 sparks $360 bounce if ETH/AI rebounds. MNDY's 120% dollar expansion and $10B TAM offer long redemption arc, but Monday's massacre confirms SaaS winter – buy the blood or wait for $250 capitulation?