Is monday.com a Good Cloud Stock to Add to Your Portfolio? By StockNews

Shares of work OS software company monday.com (MNDY (NASDAQ:)) have dipped 27.9% in price over the past month despite the company achieving solid top-line growth in its last reported quarter. While accelerating demand for its unique no-code technology has boosted its revenues, given its sky-high valuation and concerns surrounding competition from dominant players in the software industry, can its shares recover in the near term? Read more to find out.Based in Israel, cloud-based software platform monday.com Ltd. (MNDY) offers software applications in the United States, Europe, the Middle East, Africa, and internationally. The work operating system provider went public at $155 per share on June 10, 2021. While the stock has gained 32.9% in price over the past six months, its shares have retreated 5.2% over the past five days to close the last trading session at $292.09.

Despite reporting a robust third-quarter financial result last month, MNDY’s shares have dipped 27.9% over the past month. Its ARR grew 231% year-over-year, while its net dollar retention rate for customers with more than 10 users was more than 130%.

However, MNDY’s sky-high valuation has rattled investors. Although its strong top-line growth, driven by the growing adoption of its Work OS, and the launch of My Work, should help accelerate its user growth, competition from heavyweight software players such as Adobe, Inc. (NASDAQ:) and Microsoft Corp . (NASDAQ:) could cause its shares to retreat further.

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