13.08.2025 14:28

Monday.com's stock price plummeted by a staggering 33% on Monday, mirroring a broader sell-off gripping the software sector. This dramatic decline underscores the growing anxieties surrounding the disruptive potential of artificial intelligence (AI) on the industry's future.

Major software companies, including industry giants such as SAP, Salesforce, and Adobe, also experienced significant losses. These substantial drops reflect a widespread fear that AI-powered solutions are poised to reshape the competitive landscape. The market's reaction suggests a significant shift in investor sentiment.

Despite exceeding expectations in its second-quarter earnings report, Monday.com's financial performance was overshadowed by concerns about escalating expenses and continuing operating losses. This stark contrast highlights the market's prioritization of long-term AI-related risks over near-term financial successes.

Analysts interpret this AI-driven disruption as a predictable consequence within historical technological cycles. Rather than predicting complete industry eradication, these experts believe AI will fundamentally alter established business models and processes, forcing companies to adapt and innovate to remain competitive. The restructuring of the software industry is, therefore, seen as inevitable.