AlphAIAlphAI — Financial news for AI agents
finance.yahoo.comOCT 122 min read$MNDY

Barclays downgrades 2 software stocks ahead of Q3 earnings

Barclays downgraded HubSpot and Monday.com to Equal Weight, citing delayed AI-driven growth. Analyst Raimo Lenschow expects AI growth at DigitalOcean and Datadog, and emerging at Microsoft. DigitalOcean and CoreWeave raised prices due to AI demand, with potential for revenue beats. Payroll software companies Paycom and Paylocity may see earnings beats.

Original reporting
finance.yahoo.com
Published Oct 12, 2026, 1:17 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Oct 12, 2026, 1:45 PM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
About AlphAI AI DeskScoring methodologyReport an issue
AlphAI market briefFinancial news
Primary signal
$MNDY
Bearish
high confidence
Mentioned
$MNDY
Relevance
7/10
AlphAI data visualization · based on finance.yahoo.com
Decision brief

The 30-second read

$MNDYBearishMed
01

Why it matters

The downgrade may trigger short‑term sell pressure on HubSpot and Monday.com ahead of earnings.

02

Market read

Analyst downgrade ahead of earnings can move the stocks and influence sector sentiment.

03

What to watch

Potential upside from upcoming AI product launches not fully priced in.

Relevance 7/10Novelty 6/10Timing: pre‑market ahead of Q3 earnings

Background

Barclays analyst Raimo Lenschow provided a sector view, highlighting AI differentiation across software firms.

Company-level read

Ticker impact

$MNDYBearishHigh confidence
Context

Barclays downgraded Monday.com to Equal Weight from Overweight ahead of its Q3 earnings.

Expected impact

downward pressure due to lowered expectations

Evidence & confidence

Analyst expects AI adoption to materialize later than previously thought, reducing near‑term upside.

Market effects

Sector

Software sector may see broader scrutiny of AI revenue timelines.

Regional

U.S. tech stocks could face modest pullback in the near term.

Global

Limited to investors tracking AI‑driven software valuations.

Counterpoint

What could challenge this read

If AI adoption accelerates faster than expected, the downgrade could be premature.

Key entities

  • Research Firm
    Barclays

    Issuer of the downgrade and sector commentary.

  • Analyst
    Raimo Lenschow

    Barclays analyst covering software.

Read at source← All news

StoryBarclays downgrades HubSpot and monday.com to Equal‑Weight over delayed AI benefits

Related articles

SEP 30
$MNDYMed

Why is Monday.com stock rallying today?

Monday.com (MNDY) stock rose 5% after a prior downgrade and decline. JPMorgan cut its rating to Neutral, citing growth concerns. The company announced an AI-focused conference, and softer inflation data boosted tech stocks. Shares traded at $79.81, below the 52-week high of $210.49 but above the low of $57.50.

investing.com2 min
SEP 29
$MNDYMed

Why monday.com (MNDY) Shares Are Getting Obliterated Today

monday.com (MNDY) shares fell 5.3% after JPMorgan downgraded the stock to Neutral, signaling expected market-aligned performance. The stock later recovered slightly to $76.18, down 3.6% from the previous close. The company's shares have been volatile, down 46.9% year-to-date and 62.9% from their 52-week high. The decline follows broader tech sector weakness due to higher Treasury yields and oil prices, which may impact growth stocks.

financialcontent.com2 min
SEP 29
$MNDYMed

JPMorgan cuts Monday.com to Neutral on slowing growth

JPMorgan downgraded Monday.com to Neutral, citing slowing growth and customer acquisition challenges. The bank set a $87 price target for December 2027. Analyst Samik Chatterjee noted a decline in new annual recurring revenue and longer sales cycles, partly due to a 20% workforce reduction. AI products contributed 17% of new ARR but less than 1% of total revenue. The stock closed at $79.05 on Monday, down 5.5%.

investing.com2 min
SEP 29
$MNDYHigh

Why is Monday.com stock sliding today?

Monday.com (MNDY) stock fell 3% pre-market after JPMorgan downgraded it to Neutral with an $87 price target. The company had 16 buy and 9 hold ratings before the downgrade. The stock has declined since Q2 earnings, which beat revenue estimates but had cautious guidance and a 20% workforce reduction. The broader market was positive, indicating the decline is company-specific.

investing.com2 min