TD Cowen Downgrades monday.com to Hold as Shares Fall 5%

monday.com shares fell 5% in early trading Tuesday after TD Cowen cut its rating to Hold from Buy, saying paid search and SEO face greater disruption from AI ahead of the software company's third-quarter results.

TD Cowen said those channels had historically been central to monday.com's go-to-market strategy. The firm also cited higher disintermediation risk among small and midsize businesses.

TD Cowen lowered its fiscal 2027 growth outlook to 14% from about 15.5%, below the roughly 15% consensus estimate. For the third quarter, the firm expects growth near 19% and revenue about 2% above consensus. Consensus estimates are $369.18 million in revenue and adjusted earnings of $1.37 per share.

Barclays also cut its rating on monday.com to Equal-Weight in October, saying AI benefits would take longer to materialize, in Barclays' October downgrade of monday.com.