Monday.com Ltd. MNDY shares are trading lower on Thursday.

The firm is facing growth concerns as SEO-driven traffic declines and rising marketing costs point to potential self-serve headwinds.

Bank of America Securities Matt Bullock downgraded the stock from Buy to Neutral, lowering the price forecast from $240 to $205.

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Bullock downgraded the stock after reviewing web traffic trends by channel.

He noted that SEO-driven visits fell 23.5% year-over-year in the second quarter of 2025, with the decline worsening to 25.3% in July, likely due to Google’s broader rollout of AI Overviews.

Since less than 30% of signups come from Google, he built a framework using Similarweb data to gauge growth impact.

Bullock said that while shares are already down 30% since the second quarter earnings, ongoing fundamental challenges and AI-driven search risks make risk/reward balanced.

The analyst is not calling for a 2025 revenue guide miss but trimmed 2026 revenue estimates and cut his price target to $205 from $240.

Bullock warned that if July 2025 traffic declines persist, Monday.com could see meaningful self-serve headwinds in the second half of 2025 and 2026.

Extending July’s traffic trends forward, Bullock’s analysis implies a 5.2% decline in self-serve gross ARR added in 2026, translating to about a 2-point drag on total gross ARR added for that year.

Price Action: MNDY shares are trading lower by 1.33% to $171.07 at last check Thursday.

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