Monday.com (MNDY) shares fell 5.4% following a preliminary second-quarter earnings warning from IBM.
IBM expects revenue of $17.2 billion, missing the $17.86 billion analyst consensus. The company attributes this shortfall to a significant shift in enterprise spending patterns.
Corporate customers are redirecting budgets away from software and toward AI-related hardware like servers and storage. Businesses are rushing to secure supply-constrained infrastructure ahead of anticipated price increases.
This spending pivot triggered a broad sell-off across the software-as-a-service (SaaS) sector. Investors expressed concern regarding near-term growth for companies reliant on enterprise software budgets.