This Software Stock Is Down 35% but Here's Why It Just Became a $4 Million Bet

2 hours ago 2

Jonathan Ponciano, The Motley Fool

Sat, December 20, 2025 astatine 3:27 PM CST 5 min read

Montreal-based Formula Growth initiated a caller involvement successful monday.com during the 3rd quarter, acquiring 20,000 shares.
The shares were worthy astir $3.9 cardinal arsenic of September 30.
The caller presumption is extracurricular Formula Growth’s apical 5 holdings.
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On November 13, Montreal-based Formula Growth disclosed a caller presumption successful monday.com (NASDAQ:MNDY), acquiring 20,000 shares valued astatine astir $3.9 cardinal during the 3rd quarter, according to an SEC filing.

According to a filing with the Securities and Exchange Commission dated November 13, Formula Growth reported establishing a caller equity involvement successful monday.com (NASDAQ:MNDY). The money added 20,000 shares, resulting successful a quarter-end presumption valued astatine astir $3.9 million.

The caller involvement successful monday.com accounts for 1.4% of Formula Growth’s reportable AUM.

Top holdings aft the filing:

NASDAQ: SWIM: $7.53 cardinal (2.7% of AUM)
NYSE: JHX: $7.24 cardinal (2.6% of AUM)
NASDAQ: TEAM: $6.39 cardinal (2.3% of AUM)
NASDAQ: SSYS: $6.38 cardinal (2.3% of AUM)
NASDAQ: MU: $6.36 cardinal (2.3% of AUM)

As of Friday, shares of monday.com were priced astatine $147.08, down 35% implicit the past twelvemonth and good underperforming the S&P 500, which is up 16.5% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$1.2 billion
Net income (TTM)	$65.1 million
Market capitalization	$7.6 billion
Price (as of Friday)	$147.08

monday.com offers a cloud-based Work OS level for enactment management, task coordination, CRM, and bundle development, serving a wide scope of concern needs.
The institution targets organizations of each sizes globally, including enterprises, acquisition institutions, authorities agencies, and concern units seeking workflow automation and collaboration tools.
Its gross exemplary is chiefly subscription-based, with further income from nonrecreational services and support.

monday.com provides a cloud-based Work OS level that enables organizations to negociate enactment and make bundle applications for assorted concern needs. It serves organizations internationally done its cloud-based platform, supporting workflow automation and collaboration crossed industries.

This is simply a portfolio that spreads hazard crossed dozens of names, with apical holdings clustered astir the 2% to 3% range. A 1.4% allocation signals involvement without urgency, suggesting this is an early-stage condemnation that inactive needs proof. In that context, the timing is telling. The banal has been retired of favor, sentiment has cooled, and expectations person reset.

The fundamentals, however, are moving successful the other direction. In the 3rd quarter, monday.com reported gross of $316.9 million, up 26% twelvemonth implicit year, portion non-GAAP operating income climbed to $47.5 cardinal and margins expanded to 15%. Free currency travel was beardown astatine $92.3 million, and the institution ended the 4th with much than $1.5 cardinal successful cash. Customer enlargement continues to skew upmarket, with the fig of customers spending much than $100,000 annually rising astir 50% twelvemonth implicit twelvemonth and remaining show obligations jumping 36% to $747 million.

For investors whose involvement has been piqued, this is simply a stake that a profitable, cash-generating SaaS level with improving endeavor penetration mightiness yet get revalued, adjacent if the banal stays volatile successful the meantime.