What Happened?
A number of stocks fell in the afternoon session after tech stocks pulled back as reports surfaced that Chinese customs authorities blocked Nvidia's H200 AI chips, effectively halting their entry despite recent U.S. export approvals.
This semiconductor sell-off, led by Broadcom and Micron, reflected deepening fears that the "AI trade" was colliding with a protectionist "new normal." Investors were concerned about the prospect of a fragmented global order where tech giants are caught between Washington's industrial strategy and Beijing's push for semiconductor sovereignty. Broadening the risk, markets were also agitated about the Justice Department's investigation into Fed Chair Jerome Powell, sparking concerns over central bank independence. This domestic political friction, paired with rising oil prices from Iranian civil unrest, likely forced a pivot from growth to defense.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Communications Platform company Twilio (NYSE:TWLO) fell 4.6%. Is now the time to buy Twilio? Access our full analysis report here, it’s free.
- Cloud Monitoring company Datadog (NASDAQ:DDOG) fell 3%. Is now the time to buy Datadog? Access our full analysis report here, it’s free.
- Document Management company Box (NYSE:BOX) fell 3.1%. Is now the time to buy Box? Access our full analysis report here, it’s free.
- Project Management Software company monday.com (NASDAQ:MNDY) fell 5.6%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
- Tax Software company BlackLine (NASDAQ:BL) fell 4.7%. Is now the time to buy BlackLine? Access our full analysis report here, it’s free.
Zooming In On monday.com (MNDY)
monday.com’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 5.1% on the news that Barclays lowered its price target on the stock amid a broader market decline.
The investment bank trimmed its price target to $194 from $202, though it kept its "Overweight" rating on the shares. This adjustment came as some observers noted potential challenges, including revenue guidance for the fourth quarter of 2025 that fell short of expectations and pointed to slower growth. Adding to the pressure, the stock's fall happened on a day when major stock indexes like the S&P 500 and Nasdaq also traded lower.
monday.com is down 8.9% since the beginning of the year, and at $130.60 per share, it is trading 60.2% below its 52-week high of $327.92 from February 2025. Investors who bought $1,000 worth of monday.com’s shares at the IPO in June 2021 would now be looking at an investment worth $730.12.
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