10 Worst Cloud Stocks To Buy According to Short Sellers

5. Monday.com Ltd (NASDAQ:MNDY)

Short % of float: 5.93%

Number of Hedge Fund Holders: 43

Monday.com Ltd. (NASDAQ:MNDY) is a cloud-based platform that enables users to build custom applications and project management tools. Its visual interface helps teams of all sizes manage projects, collaborate, and automate workflows. In Q2 2024, Monday.com introduced new GenAI features to the platform, including auto-generated action items, threat summaries, and improved text extraction capabilities.

Monday.com Ltd. (NASDAQ:MNDY) achieved impressive financial growth in the second quarter, reporting a 34% increase in revenue and record GAAP profitability, driven by a major expansion deal involving 80,000 seats. In August, the company also reached $1 billion in annual recurring revenue, a significant milestone just ten years after launching its Work Operating System (Work OS), up from $1 million in ARR eight years ago.

Following the Q2 earnings report, William Blair reaffirmed its Outperform rating on Monday.com Ltd. (NASDAQ:MNDY). The analyst emphasized that the recent results highlight Monday.com’s strong position for long-term success in the work management and collaboration space, and the company is on course to become a powerful enterprise-grade platform.

Next Century Growth Small Cap Strategy stated the following regarding Monday.com Ltd. (NASDAQ:MNDY) in its first quarter 2024 investor letter:

“Monday.com Ltd. (NASDAQ:MNDY) provides a next generation software platform for companies to run many key aspects of their businesses, such as managing project tasks and workflows, product development, and sales CRM (customer relationship management). MNDY has had success selling into small and medium size businesses and is having increasing success further up market. Revenue growth is currently in the 30% range and the company has proven they can operate profitably and generate solid free cash flow.”