$MNDY

Bank of America warns that AI agents like Meta's Muse and OpenAI's Dots may disrupt software companies serving consumers and SMBs, citing potential replacement of standalone tools. The bank lists Asana, monday.com, BlackLine, Dropbox, HubSpot, Intuit, Paycom, Paylocity, and Zoom as vulnerable. It also notes that AI adoption could benefit CoreWeave, Nebius, Oracle, Datadog, Dynatrace, Microsoft, MongoDB, and Shopify.

FuelCell Energy (FCEL) rose 9% after Oppenheimer initiated coverage with an Outperform rating and $24 target. Carnival (CCL) gained 11.6% on record Q3 2026 results and raised full-year forecast. Warby Parker (WRBY) increased 10.4% following Google AI smart glasses partnership. FICO (FICO) dropped 20% due to FHFA mortgage pricing grid and TransUnion pricing lock. monday.com (MNDY) fell 5.3% after JPMorgan downgrade to Neutral.

UiPath (PATH), monday.com (MNDY), Amplitude (AMPL), Doximity (DOCS), and Sprinklr (CXM) shares rose after a 0.9% increase in August personal consumption expenditures, indicating strong consumer demand. Doximity's volatility and recent performance were highlighted, with the stock down 35.3% year-to-date.

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%.

In 2026, multiple tech companies announced layoffs. Microsoft cut 4,800 jobs, mostly in Xbox. Oracle laid off 21,000, citing AI adoption. Uber reduced its workforce by 3,300. Apple, TikTok, Zillow, Etsy, Intel, and Visa also announced job cuts. Some companies attributed layoffs to AI investments or restructuring efforts.

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.

Enterprise software stocks rose on Wednesday, with Atlassian (TEAM), Monday.com (MNDY), Salesforce (CRM), and ServiceNow (NOW) up 2-3%. Atlassian announced accelerated U.S. federal cloud investments. The iShares Expanded Tech-Software Sector ETF (IGV) gained 1% while the Invesco QQQ Trust (QQQ) fell 0.88%. Rising long-term Treasury yields typically pressure such stocks, making the rally unusual.

Tech layoffs in 2026 have affected multiple companies, including Apple, Oracle, Uber, and others. Oracle cut 21,000 jobs (13% of its workforce) due to AI adoption. Apple laid off employees in Fitness+ and Vision Group. Uber cut 3,300 jobs (10% of its workforce) in a restructuring effort. TikTok, Zillow, Etsy, Microsoft, Intel, Visa, Monday.com, and Patreon also announced layoffs, with varying reasons including AI investments and organizational changes.

Shares of enterprise software and SaaS companies, including Atlassian (TEAM), Palo Alto Networks (PANW), SentinelOne (S), monday.com (MNDY), and Freshworks (FRSH), rose as investors shifted from semiconductor and AI-hardware stocks. The move followed calls for a pause in AI development, reducing concerns about AI displacing traditional software. SentinelOne's stock surged 15.3%, nearing its 52-week high, despite volatility and recent market downturns.

Monday.com (MNDY) stock rose 16% in August, despite initial investor concerns over its Q2 results. Revenue grew 22% YoY to $365M, and adjusted net income increased 13% to $65.6M. The company provided optimistic guidance for Q3 and 2026. A strong earnings report from Salesforce later in the month boosted investor sentiment in the CRM sector, benefiting Monday.com.