MongoDB Stock News and Forecast: MDB adds $6 billion to market cap with 27% earnings rally
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- MongoDB nearly tripled the adjusted EPS expectation in fiscal Q1.
- MDB stock completely closed the gap from September 1, 2022.
- Atlas platform, which accounts for two-thirds of revenue, increased 40% YoY.
- MongoDB added 2,300 customers in Q1, the most in two years.
MongoDB (MDB), a company that provides a cloud database-as-a-service platform to corporations worldwide, surprised the market late Thursday with a strong showing in its fiscal first-quarter earnings results. MDB shot up 27% in Friday’s premarket, adding about $6 billion in market cap to the tech firm.
MongoDB stock news: Guidance swings higher
Wall Street analysts had placed their consensus for $0.19, but instead MongoDB brought home nearly three times as much at $0.56 per share. Revenue of $368 million grew 29% YoY and beat the analyst consensus by $21 million.
MongoDB’s main product, its Atlas platform, saw revenue rise 40% YoY as the company added 2,300 customers during the quarter – its highest in two years. It now has 43,100 customers.
The outlook is what really drove market demand however. MongoDB CEO Dev Ittycheria guided for next quarter revenue at a midpoint of $390 million. Prior forecasts had average just below $361 million. Ittycheria also said Q2 adjusted EPS would arrive between $0.43 and $0.46 versus consensus from analysts for $0.14.
For the full year, MongoDB’s management is expecting revenue of $1.532 billion, while consensus had been $1.510 billion. The consensus estimate for full-year adjusted EPS at $1.04 was easily surpassed by Ittycheria’s $1.49 midpoint guide.
“The shift to AI will favor modern platforms that offer a rich and sophisticated set of capabilities, delivered in a performance and scalable way,” said Ittycheria on the earnings call. “We are observing an emerging trend where customers are increasingly choosing Atlas as a platform to build and run new AI applications. For example, in Q1, more than 200 of the new Atlas customers were [artificial intelligence] or [machine learning] companies.”
MongoDB stock forecast
MongoDB stock was already telling traders it was a buy when the daily chart featured a Golden Cross on May 10. This is when the 50-day moving average crosses above its 200-day counterpart. Although the 200-day was rising at the time of the cross (ideally it should be falling too), it may still be a bullish sign for the stock. MDB stock has been in an uptrend since last November, but this current earnings rally is still a bit surprising.
MDB gobbled up the gap down from September 1 of last year and is now approaching resistance from August 2022 at $390. Above that point there are few bull targets until one reaches the $460 double-top from spring 2020.
MDB daily chart
- MongoDB nearly tripled the adjusted EPS expectation in fiscal Q1.
- MDB stock completely closed the gap from September 1, 2022.
- Atlas platform, which accounts for two-thirds of revenue, increased 40% YoY.
- MongoDB added 2,300 customers in Q1, the most in two years.
MongoDB (MDB), a company that provides a cloud database-as-a-service platform to corporations worldwide, surprised the market late Thursday with a strong showing in its fiscal first-quarter earnings results. MDB shot up 27% in Friday’s premarket, adding about $6 billion in market cap to the tech firm.
MongoDB stock news: Guidance swings higher
Wall Street analysts had placed their consensus for $0.19, but instead MongoDB brought home nearly three times as much at $0.56 per share. Revenue of $368 million grew 29% YoY and beat the analyst consensus by $21 million.
MongoDB’s main product, its Atlas platform, saw revenue rise 40% YoY as the company added 2,300 customers during the quarter – its highest in two years. It now has 43,100 customers.
The outlook is what really drove market demand however. MongoDB CEO Dev Ittycheria guided for next quarter revenue at a midpoint of $390 million. Prior forecasts had average just below $361 million. Ittycheria also said Q2 adjusted EPS would arrive between $0.43 and $0.46 versus consensus from analysts for $0.14.
For the full year, MongoDB’s management is expecting revenue of $1.532 billion, while consensus had been $1.510 billion. The consensus estimate for full-year adjusted EPS at $1.04 was easily surpassed by Ittycheria’s $1.49 midpoint guide.
“The shift to AI will favor modern platforms that offer a rich and sophisticated set of capabilities, delivered in a performance and scalable way,” said Ittycheria on the earnings call. “We are observing an emerging trend where customers are increasingly choosing Atlas as a platform to build and run new AI applications. For example, in Q1, more than 200 of the new Atlas customers were [artificial intelligence] or [machine learning] companies.”
MongoDB stock forecast
MongoDB stock was already telling traders it was a buy when the daily chart featured a Golden Cross on May 10. This is when the 50-day moving average crosses above its 200-day counterpart. Although the 200-day was rising at the time of the cross (ideally it should be falling too), it may still be a bullish sign for the stock. MDB stock has been in an uptrend since last November, but this current earnings rally is still a bit surprising.
MDB gobbled up the gap down from September 1 of last year and is now approaching resistance from August 2022 at $390. Above that point there are few bull targets until one reaches the $460 double-top from spring 2020.
MDB daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.