Wall Street Ends Week Lower as Israeli Stocks Monday.com, eToro and Mobileye Make Waves
Wall Street indices closed lower for the week, while Israeli equities saw mixed results. Monday.com surged nearly 18% following AI rollouts, whereas eToro and Mobileye hit all-time lows ahead of upcoming third-quarter earnings reports.
Wall Street finished the week on a negative note, with major indices including the S&P 500 and Nasdaq closing lower, while the Dow Jones posted a slight gain. Israeli and Israel-linked stocks experienced notable movements during the trading week.
Monday.com Continues Recovery with Strong Weekly Gains
Monday.com shares rose 6.4% over the final two days of the week, capping off a weekly gain of 17.9%. The stock reclaimed the $100 threshold, a level it slipped below earlier this year. Led by co-founders Roy Mann and Eran Zinman, Monday.com currently trades on the Nasdaq with a market capitalization of $4.5 billion, compared to a peak valuation of over $19 billion in 2021. Since hitting its low point in April, the stock has climbed 81.1%.
The work management software provider was initially viewed as vulnerable to generative AI disruptions, leading to a sharp sell-off earlier this year amid the so-called SaaS apocalypse. However, software equities have since staged a partial recovery. Last week, Monday.com announced the launch of a voice AI agent platform designed to conduct calls and close sales deals. The company previously shifted its strategy toward autonomous AI agents, accompanied by restructuring that included laying off 20% of its workforce, roughly 620 employees, to focus on AI-driven products. Monday.com is scheduled to release its third-quarter financial results on November 9, with analysts anticipating revenue growth of 16.5% to $369 million and a Non-GAAP net income per share increase of 18.1% to $1.37.
eToro Hits Record Low Ahead of Third-Quarter Earnings
eToro shares closed at an all-time low of $23.92 on Friday, reflecting a market valuation of $1.9 billion. Having gone public on the Nasdaq roughly a year and a half ago, eToro has lost 54% of its value since its initial public offering. Led by co-founder Yoni Assia, the multi-asset investment platform is set to report third-quarter earnings on November 10. Analysts consensus forecasts a 12% decline in revenue year-over-year to $189 million, alongside a drop in earnings per share from 53 cents in the same quarter last year to 30 cents.
In recent weeks, covering analysts have adjusted their price targets downward. Susquehanna lowered its price target from $51 to $46, citing relative softness in third-quarter trading conditions, particularly across equities and commodities. Bank of America similarly reduced its price target from $46 to $39. According to Wall Street Journal data, 10 analysts maintain positive recommendations on eToro, while 5 hold neutral ratings, with average price targets pointing to an 80.7% upside potential.
Mobileye Trades at All-Time Low Amid Diverging Analyst Views
Mobileye shares also closed the week at an all-time low, dropping 5.9% on Friday to finish at $6.54 and bringing its market capitalization to approximately $5.6 billion. The automotive tech firm, led by co-founder Professor Amnon Shashua, is slated to release its third-quarter financial results on Thursday. During its previous earnings report, Mobileye announced Shashua's intention to step down as CEO while remaining on the board, with discussions underway regarding a potential appointment as chairman. A successor has not yet been named.
Analyst sentiment has been sharply divided in recent weeks. Citi initiated coverage on Mobileye with a Buy rating and an 11 dollar price target, representing a 68.2% premium over its current Nasdaq price, highlighting ongoing automotive safety investments as a key growth driver. Conversely, RBC downgraded the stock from Sector Perform to Underperform, cutting its price target from $7 to $5, citing intensifying competitive pressures. Wall Street Journal figures show 12 analysts hold positive ratings on Mobileye, 11 are neutral, and 2 are negative, with average price targets reflecting a 65.3% premium.
