Nasdaq selloff rattles monday.com backdrop as tech valuations reset

The Nasdaq 100 was on pace to erase more than $1 trillion in market value as tech and chip stocks sold off, a sharp reminder that sentiment can turn faster than the story line. For monday.com, the immediate lesson is less about its own operating trend than about how quickly investors can reprice software names, even when revenue, cash flow, and product execution are improving.

That reset got louder as SpaceX fell below $2 trillion in market cap for the first time since its U.S. debut and lost more than $600 billion over three trading sessions. When markets pull back like that, growth companies feel it in places that are easy to miss from the outside: sales teams face more cautious buyers, hiring managers get asked to justify every headcount move, and employees with MNDY exposure watch the gap between business performance and stock performance widen or close in a hurry.

monday.com’s latest numbers help explain why the stock can still be sensitive to that broader mood. As of March 31, 2026, the company said it had 3,211 employees, 4,547 customers paying more than $50,000 in annual recurring revenue, and a net dollar retention rate of 110%. It also said more than 250,000 customers worldwide use its platform, a reminder that the company’s footprint is now much bigger than the early work-management category it helped define.

In the first quarter of fiscal 2026, monday.com reported revenue of $351.3 million, up 24% from a year earlier, along with record GAAP and non-GAAP operating income. The company also posted $102.8 million in adjusted free cash flow and launched its AI Work Platform with native agents, a clear sign that it wants AI to show up not just as a feature layer but as part of the operating model. Co-CEOs Roy Mann and Eran Zinman have said the shift to consumption-based pricing is meant to align growth with customer usage, while CFO Eliran Glazer said AI productivity gains inside the company are helping revenue rise without headcount growing in lockstep.

That is the practical tension for monday.com’s engineers, product managers, and sales teams. The company is not being judged only on whether it ships new AI tools, but on whether those tools produce durable customer value and better operating leverage when the market stops paying up for promises. In a selloff like this, execution matters more than narrative, and the companies that can prove it tend to hold up best.