Capital One downgrades Monday.com to Equalweight on weaker Q3 revenue outlook despite strong Q2 results.

Capital One Financial downgraded Monday.com's stock rating to Equalweight with a new price target of $95, citing Q3 revenue guidance below analyst expectations. Monday.com forecasted Q3 revenue between $368 million and $370 million, under the consensus estimate of $372.8 million, causing a stock drop over 6%. Despite this, Monday.com reported strong Q2 results with 22% revenue growth and earnings surpassing estimates. The company is shifting focus to larger customers, leading to longer sales cycles but improving revenue quality, with high-value customers now making up 43% of annual recurring revenue, up from 38% a year ago.