Testing the AI Threat to Software Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy MNDY?
Source: Newsfilter
- AI Tool Threat: CNBC tested the threat of AI to software companies using Anthropic's AI coding tool Claude Code, which demonstrated the ability to generate functional prototypes in a short time, posing a challenge to traditional software like Monday.com, valued at $5 billion.
- Market Reaction: Recent sell-offs in software, legal services, and video game stocks stem from fears of AI's new features, with investors particularly concerned about tools like Atlassian, Adobe, and HubSpot that are seen as more vulnerable to disruption.
- System Security Analysis: While record systems like Salesforce are relatively secure due to their core enterprise data, they are not immune; analysts suggest that the rapid advancement of AI could impact these systems' market positions, especially in a fast-evolving tech landscape.
- Investment Opportunities: The wholesale sell-off in the software sector presents investors with the chance to differentiate between 'need-to-haves' and 'nice-to-haves', allowing them to identify companies that maintain competitive advantages amid the AI wave for long-term returns.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MNDY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MNDY
Wall Street analysts forecast MNDY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MNDY is 235.58 USD with a low forecast of 195.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 94.590
Low
195.00
Averages
235.58
High
310.00
Current: 94.590
Low
195.00
Averages
235.58
High
310.00
About MNDY
Monday.Com Ltd is an Israel-based company engaged primarily in the software sector. The Company provides cloud-based platform that enables its users to create custom applications and project management software. The platform offers a Work Operating System (Work OS) that provides modular building blocks to create software applications and work management tools. This system is designed to enhance team collaboration and streamline workflows across various business functions, including project management, CRM, marketing, and more. The Company has teams in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev, and Sydney. The Company customize its platform to suit any business vertical and serves customers worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Next Week's Market Focus: Super Bowl and Earnings Reports
- Super Bowl Event: This Sunday, the Patriots will face the Seahawks in Super Bowl LX, expected to attract a large audience and boost related advertising revenues, further solidifying the significance of sporting events in the market.
- Earnings Season Arrives: Companies like Coinbase, Ford, McDonald's, and Moderna will report earnings next week, with analysts focusing on McDonald's same-store sales, which are expected to rise due to promotional activities, reflecting consumer demand for value products.
- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
- Inflation Indicator Focus: The Consumer Price Index (CPI) will be released on Friday, with the market closely monitoring this key indicator's impact on future economic outlook and Federal Reserve policy, potentially influencing interest rate decisions.
See More
Testing the AI Threat to Software Companies
- AI Tool Threat: CNBC tested the threat of AI to software companies using Anthropic's AI coding tool Claude Code, which demonstrated the ability to generate functional prototypes in a short time, posing a challenge to traditional software like Monday.com, valued at $5 billion.
- Market Reaction: Recent sell-offs in software, legal services, and video game stocks stem from fears of AI's new features, with investors particularly concerned about tools like Atlassian, Adobe, and HubSpot that are seen as more vulnerable to disruption.
- System Security Analysis: While record systems like Salesforce are relatively secure due to their core enterprise data, they are not immune; analysts suggest that the rapid advancement of AI could impact these systems' market positions, especially in a fast-evolving tech landscape.
- Investment Opportunities: The wholesale sell-off in the software sector presents investors with the chance to differentiate between 'need-to-haves' and 'nice-to-haves', allowing them to identify companies that maintain competitive advantages amid the AI wave for long-term returns.
See More
Analysis of AI Tools' Threat to Software Industry
- Software Sell-off: Recent sell-offs in software, legal services, and video game stocks highlight market fears that new AI features could replace traditional tools, indicating a heightened sensitivity to technological disruption.
- AI Prototype Development: CNBC's team successfully created a project management dashboard similar to Monday.com using Anthropic's AI coding tool 'Claude Code' in under an hour, showcasing AI's potential to simplify the development process.
- Cost Efficiency Analysis: The development cost using AI tools ranges from $5 to $15, and as more data centers are built, this cost is expected to decrease further, making it more accessible for users.
- Investor Focus: Analysts suggest that companies like Atlassian, Adobe, and HubSpot face significant risks as their tools are not core to business operations, prompting investors to pay attention to the market performance of these 'nice-to-have' products.
See More
WisdomTree Cloud Fund Plummets 20% in 2026 Amid AI Concerns
- Cloud Fund Decline: The WisdomTree Cloud Computing Fund has dropped approximately 20% in 2026, including a 6.5% decline this week, reflecting investor concerns over potential disruptions from AI technology, which has negatively impacted confidence across the sector.
- Box's Poor Performance: Box's stock has fallen 17% in 2026, experiencing its steepest monthly drop since 2023, and while CEO Aaron Levie describes this as the most exciting moment in the company's 20-year history, the market remains pessimistic about its future prospects.
- Increased Competition: The launch of new legal and marketing features for Anthropic's Claude Cowork productivity tool has made investors more cautious, fearing that AI could replace traditional software solutions, leading to significant stock declines for companies like HubSpot and Figma, which fell 39% and 40%, respectively.
- Divergent Market Reactions: Despite escalating fears of AI-related disruption, analysts highlight that many software companies maintain solid fundamentals, with HubSpot showing strong business performance and Monday.com being viewed as a profitable grower benefiting from digital and AI collaboration trends, indicating a divergence in market reactions.
See More
Software Sector Faces AI Disruption
- Market Performance Decline: Box's stock has dropped 17% in 2026, reflecting investor concerns about the future of software companies amid the rise of AI, leading to significant market value erosion and impacting company confidence.
- Intensifying Industry Competition: With the launch of new tools like Anthropic's Claude Cowork, software companies face direct competition from AI technologies, and despite efforts from Salesforce and ServiceNow to maintain market share, their valuations have fallen by about 25%, indicating weakened market confidence in traditional software.
- Shift in Investor Sentiment: While some analysts believe companies like HubSpot remain robust, the overall market sentiment towards the software sector has turned pessimistic, resulting in significant stock price declines for many firms, reflecting fears of AI replacing traditional software solutions.
- Pressure to Adapt Technologically: Box CEO Levie emphasizes that software companies must rapidly embrace AI to remain competitive, and this pressure is driving innovation in products and services to meet growing customer demands, potentially reshaping the industry landscape in the long term.
See More
Software Struggles Continue, But 2 Stocks May Defy the Odds.
- Software Sector Concerns: The software industry is experiencing anxiety as artificial intelligence threatens to disrupt market share.
- Potential Defenders: Companies like Atlassian and Monday.com are positioned to combat the challenges posed by AI in the market.
See More
Next Week's Market Focus: Super Bowl and Earnings Reports
- Super Bowl Event: This Sunday, the Patriots will face the Seahawks in Super Bowl LX, expected to attract a large audience and boost related advertising revenues, further solidifying the significance of sporting events in the market.
- Earnings Season Arrives: Companies like Coinbase, Ford, McDonald's, and Moderna will report earnings next week, with analysts focusing on McDonald's same-store sales, which are expected to rise due to promotional activities, reflecting consumer demand for value products.
- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
- Inflation Indicator Focus: The Consumer Price Index (CPI) will be released on Friday, with the market closely monitoring this key indicator's impact on future economic outlook and Federal Reserve policy, potentially influencing interest rate decisions.
See More
Testing the AI Threat to Software Companies
- AI Tool Threat: CNBC tested the threat of AI to software companies using Anthropic's AI coding tool Claude Code, which demonstrated the ability to generate functional prototypes in a short time, posing a challenge to traditional software like Monday.com, valued at $5 billion.
- Market Reaction: Recent sell-offs in software, legal services, and video game stocks stem from fears of AI's new features, with investors particularly concerned about tools like Atlassian, Adobe, and HubSpot that are seen as more vulnerable to disruption.
- System Security Analysis: While record systems like Salesforce are relatively secure due to their core enterprise data, they are not immune; analysts suggest that the rapid advancement of AI could impact these systems' market positions, especially in a fast-evolving tech landscape.
- Investment Opportunities: The wholesale sell-off in the software sector presents investors with the chance to differentiate between 'need-to-haves' and 'nice-to-haves', allowing them to identify companies that maintain competitive advantages amid the AI wave for long-term returns.
See More
Analysis of AI Tools' Threat to Software Industry
- Software Sell-off: Recent sell-offs in software, legal services, and video game stocks highlight market fears that new AI features could replace traditional tools, indicating a heightened sensitivity to technological disruption.
- AI Prototype Development: CNBC's team successfully created a project management dashboard similar to Monday.com using Anthropic's AI coding tool 'Claude Code' in under an hour, showcasing AI's potential to simplify the development process.
- Cost Efficiency Analysis: The development cost using AI tools ranges from $5 to $15, and as more data centers are built, this cost is expected to decrease further, making it more accessible for users.
- Investor Focus: Analysts suggest that companies like Atlassian, Adobe, and HubSpot face significant risks as their tools are not core to business operations, prompting investors to pay attention to the market performance of these 'nice-to-have' products.
See More
WisdomTree Cloud Fund Plummets 20% in 2026 Amid AI Concerns
- Cloud Fund Decline: The WisdomTree Cloud Computing Fund has dropped approximately 20% in 2026, including a 6.5% decline this week, reflecting investor concerns over potential disruptions from AI technology, which has negatively impacted confidence across the sector.
- Box's Poor Performance: Box's stock has fallen 17% in 2026, experiencing its steepest monthly drop since 2023, and while CEO Aaron Levie describes this as the most exciting moment in the company's 20-year history, the market remains pessimistic about its future prospects.
- Increased Competition: The launch of new legal and marketing features for Anthropic's Claude Cowork productivity tool has made investors more cautious, fearing that AI could replace traditional software solutions, leading to significant stock declines for companies like HubSpot and Figma, which fell 39% and 40%, respectively.
- Divergent Market Reactions: Despite escalating fears of AI-related disruption, analysts highlight that many software companies maintain solid fundamentals, with HubSpot showing strong business performance and Monday.com being viewed as a profitable grower benefiting from digital and AI collaboration trends, indicating a divergence in market reactions.
See More
Software Sector Faces AI Disruption
- Market Performance Decline: Box's stock has dropped 17% in 2026, reflecting investor concerns about the future of software companies amid the rise of AI, leading to significant market value erosion and impacting company confidence.
- Intensifying Industry Competition: With the launch of new tools like Anthropic's Claude Cowork, software companies face direct competition from AI technologies, and despite efforts from Salesforce and ServiceNow to maintain market share, their valuations have fallen by about 25%, indicating weakened market confidence in traditional software.
- Shift in Investor Sentiment: While some analysts believe companies like HubSpot remain robust, the overall market sentiment towards the software sector has turned pessimistic, resulting in significant stock price declines for many firms, reflecting fears of AI replacing traditional software solutions.
- Pressure to Adapt Technologically: Box CEO Levie emphasizes that software companies must rapidly embrace AI to remain competitive, and this pressure is driving innovation in products and services to meet growing customer demands, potentially reshaping the industry landscape in the long term.
See More
Software Struggles Continue, But 2 Stocks May Defy the Odds.
- Software Sector Concerns: The software industry is experiencing anxiety as artificial intelligence threatens to disrupt market share.
- Potential Defenders: Companies like Atlassian and Monday.com are positioned to combat the challenges posed by AI in the market.
See More
