monday.com is a profitable SaaS platform priced like legacy software because the market fears AI disruption. Q1 was very solid: revenue grew 24%, GAAP operating income was positive, free cash flow was strong, and enterprise customers are still growing much faster. Yet the stock remains deep in the penalty box. x.com 

monday.com is priced as if growth will soon turn negative, which is far from certain, at 1.1x 2027 EV/sales and 9x 2027 EV/FCF excluding SBC. It still grows in the high teens with 110% net dollar retention and just bought back a lot of stock. AI clearly threatens its UI/UX edge, but its AI features, integrations and security and governance may be hard for purely agentic tools to replicate; shorts seem to be pressing. x.com  x.com 

Monday.com's valuation is ridiculously low, making it worth buying more despite concern about decelerating growth; fair value is at least $130 a share. x.com  x.com 

Monday.com is breaking out of a base built since February after raising its 2026 guidance, with some analysts flagging it as still meaningfully undervalued. Two pennant consolidations formed in May and June, and price is reclaiming its 20/50 EMA cloud, with strong volume support in the upper $70s and buyers stepping in on pullbacks. It needs to clear and hold $81.21 to confirm the breakout, with targets of $97.30 and $109.58. x.com 

ServiceNow's unexpected expense surge makes its rich valuation more vulnerable in a struggling software sector. Revenue rose 21%, but spending drove an EPS miss and one quarter of guided cRPO deceleration; wider market conditions could hurt near term. The 20% selloff looks excessive, and few software companies should benefit as much from AI. Management could deliver over 3-5 years, though the stock is only close to a buy again now; below $100 looks good for the long term. x.com  x.com  x.com  x.com 

monday.com may be among the most AI-proof software names because it has always faced heavy competition and easy switching, so AI changes little. If AI makes switching away from systems of record like SAP easier, that is a step change in their moats. The valuation gap between systems of record and names like monday.com arguably should narrow. x.com 

Usage-driven AI stocks are less exposed to frontier-model companies as the AI trade separates winners from losers. All rose, all will fall, and only some will recover; favor usage-driven over frontier-biased stocks. DigitalOcean is GAAP profitable; its token usage is a nonlinear revenue proxy. SiTime is GAAP profitable; robotics, defense and self-driving are each growing 50% year over year. CrowdStrike and Rubrik also do not rely on frontier models, though valuation is a concern. x.com  x.com 

Some software stocks had gotten stupid cheap, including monday.com, Wix, Cellebrite, Adobe, Salesforce and Workday, which makes the sector's rebound welcome. x.com  x.com 

Zeta Global, ServiceNow, Datadog and CrowdStrike look increasingly attractive among software names as AI disrupts applications: businesses with proprietary data that build on AI and deliver intelligence and measurable outcomes could win. Cybersecurity valuations remain a concern. x.com 

Software stocks may benefit from the AI displacement trade's complete reversal through 2026: instead of AI supposedly displacing traditional software companies, software companies could potentially displace the AI trade itself. x.com