What Should Investors Do With the New Wave of IPOs?
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What Should Investors Do With the New Wave of IPOs?
May 16, 2026 — 06:30 pm EDT
Written by
Motley Fool Staff for
The Motley Fool->
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In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Jon Quast, Matt Frankel, and Rachel Warren discuss:
- Monday.com’s financial results for the first quarter of 2026.
- The upcoming Cerebras IPO.
- Mailbag: Trim my winners to raise cash or deploy new cash?
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A full transcript is below.
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This podcast was recorded on May 11, 2026.
Jon Quast: What should investors do with a new wave of IPOs coming? You're listening to Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm Jon Quast, and I'm joined today by Fool contributors Matt Frankel and Rachel Warren. Later in the show, we do want to talk about a new IPO that is coming to market, as well as a question from you regarding what to do with new IPOs when they do go public.
But first, we wanted to talk about earnings report that came out this morning and that is from Monday.com. This is a enterprise software company, and we've been talking about the death of SAT stocks. And this reminds me of the Monty Python routine where they're saying, bring out your dead, and the one guys like, I'm not dead yet. I'm actually getting better. Monday.com gets lumped in with the stocks that are doomed, and it reported today. The market apparently loved it. Because, man, the stock jumped about 25% in pre-market trading. I see it's down from that now that we're recording, but this is a stock that got hammered down over 70% over the last year, but there must have been something here that the market liked, Rachel.
Rachel Warren: The stock has taken a massive beating over the last year, down significantly. It's worth noting, Monday.com stock is still down about 50% year to date at the time that we're recording this episode. I think what we've been seeing is really, I think a lot of the market appetite that's been surrounding a lot of software stocks. This fear that generative AI will either disrupt Monday.com's customer acquisition, maybe render its project management tools obsolete. But certainly, there were a few things that the market liked. For starters, Monday.com beat analyst expectations on the top line with $351 million in revenue. That was a 24% year-over-year increase. The company also delivered adjusted earnings per share of $1.15. That's compared to what analysts were guiding for of just $0.93 a share. Management also raised their guidance for 2026. They're now looking to bring in about 1.5 billion in revenue. The launch of their new AI work platform, also, net dollar retention rate was 110%. There were certainly some good numbers that the market seems to like.
Jon Quast: Matt, what stood out to you?
Matt Frankel: In a nutshell, the market was pricing in three things, rapidly slowing growth, margin compression, and the risk of AI disruption. This quarter really showed better than expected results when it comes to all three of those things. Rachel noted that Monday beat expectations on the top and bottom line. They give excellent guidance. Beyond those headlines, looking at RPOs remaining performance obligations, which is future booked work, that was up 33% year-over-year. Anytime you