Monday.com (MNDY), an Israeli based cloud work management platform, reported earnings Wednesday morning. Formerly a market darling, MNDY got clocked to the tune of -28% on almost 10x average volume. I believe the issue was 2022 guidance to a larger than expected Non-GAAP operating loss of $147 million to $142 million compared to a $53 million loss in 2021. Clearly, this has been an extremely rough patch for early stage, money losing, growth stocks.
But – as I’ve been suggesting – a lot of the damage has probably already been done to a stock like MNDY which is now -70% from its high just three months ago. It’s still not a cheap stock at 12x 2022 revenue guidance but great growth stocks grow into their valuations. And with nearly $900 million in cash and no debt, MNDY is in no danger of going bankrupt anytime soon. I’m not calling a bottom but I believe it’s time to start nibbling on these leaders of tomorrow. I initiated a small position in MNDY today.