MongoDB Stock News and Forecast: MDB adds $6 billion to market cap with 27% earnings rally

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.

Clay Webster FXStreet

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

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

GBP/USD trims losses, approaches 1.3500

GBP/USD adds to the multi-day negative streak, although it has managed to bounce off earlier four-week lows near 1.3470 on Wednesday. Meanwhile, Cable’s deep correction comes despite the tepid performance in the Greenback and the persistent geopolitical concerns.

EUR/USD slips back toward 1.1580 on USD recovery

EUR/USD comes under some pressure and revisits the 1.1580 region as the NA session draws to a close on Wednesday. That said, spot adds to Tuesday’s bearish performance while the Greenback is slowly gathering steam and leaving behind earlier lows.

Gold fails near $4,400 as Fed hike bets and Iran tensions support USD

Gold consolidates below $4,400 during the Asian session on Thursday, stalling the previous day's goodish recovery from a four-week low. Escalating US-Iran tensions and September Fed rate hike bets counter Wednesday's weak US ADP report, offering some support to the US Dollar and capping the commodity. However, sliding US bond yields could act as a tailwind for the non-yielding bullion.

Bitcoin holds $63K and $86K range as profit-taking risk builds

Bitcoin's recovery faces growing resistance as the market trades between a major accumulation zone below current prices and a dense concentration of potential supply overhead, according to a Glassnode report published Wednesday. After climbing above $80,000 on August 27, BTC encountered sustained selling pressure and retreated toward $76,000, triggering a series of long liquidations.

US President Donald Trump: Renewed campaign against Iran will not continue for too long

US President Donald Trump said that while the US is prepared to strike Iran again at any time, he doesn’t expect the renewed fighting to last “too long,” Reuters reported on Wednesday. Iran’s Supreme Leader Mojtaba Khamenei said that Iran’s armed forces have “unforgettable lessons” in store for the US in his first message since fighting resumed after a month of relative calm.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.