Monday.com Ltd. (MNDY) experienced a significant pre-market plunge, with its stock falling 5.34%. This movement occurred during the pre-market trading session.
The drop aligns with a broader selloff in the software sector, driven by investor concerns that new artificial intelligence tools could disrupt traditional software business models. Recent product launches from AI companies like Anthropic and OpenAI have intensified fears that AI agents could perform tasks currently handled by specialized software applications.
Analysts have specifically identified Monday.com as one of the software-as-a-service companies most at risk from AI disruption. The company was named alongside others in the application software space that are seen as more vulnerable compared to infrastructure software providers, contributing to the negative investor sentiment and the stock's pre-market decline.