MNDY - monday.com: At Such High Valuation Multiples There's More Risk Than Reward
2024-06-16 00:50:23 ET
Summary
- monday.com is at risk of declining after a ~30% rally this year.
- The stock trades at ~10x current-year revenue and ~40x current-year FCF, much richer than many of its peers.
- The company is also planning a sharp headcount expansion this year that will eat into its margins.
- Recent price increases are helping to boost revenue growth, but the impacts of churn remain to be seen.
In my view, now is the time to be cautious, not greedy. With the S&P 500 dancing at all-time highs, and the very real possibility that investors' rate cut expectations may not be met with the Fed indicating a slower pace of reactions , we should be especially wary of tech stocks with high valuation multiples....
monday.com: At Such High Valuation Multiples, There's More Risk Than Reward