Stock story –
What happened?
Stocks of database software company MongoDB (NASDAQ:) rose 17.5% in the afternoon session after fellow data analytics software provider Snowflake (NYSE:) reported impressive third-quarter results that beat analysts’ revenue and profit expectations. Customer retention has also normalized, indicating that some of the demand headwinds that have hampered the growth of some enterprise software companies are fading, especially those with more exposure to small and medium-sized businesses. The improved trends are also supported by Snowflake’s strong sales outlook, which exceeded consensus estimates. Overall, the results showed signs of improved demand within the data analytics segment. Is Now the Time to Buy MongoDB? Find out by reading the original article on StockStory, it’s free.
What the market tells us
MongoDB stock is highly volatile, having seen 20 moves of more than 5% in the past year. But such big moves are rare even for MongoDB and indicate that this news has had a significant impact on the market’s perception of the company.
The biggest move we wrote about in the past year was three months ago, when shares gained 17.9% on news that the company reported a beat and raise quarter. Second quarter results exceeded analyst expectations. Revenue benefited from the strong performance of the Atlas cloud offering, which recorded 27% year-on-year revenue growth while delivering 71% of total revenue. Next (LON:) Revenue expectations for the quarter also came in ahead of Wall Street estimates. While AI is not yet a major revenue driver for the company, MDB launched the MongoDB AI Applications Program (MAAP) to accelerate demand for its AI solutions. The fact that the company has raised expectations for the full year across the board is the icing on the cake. However, the quarter was not without challenges as the company saw a slight slowdown in the consumption of existing workloads due to macroeconomic headwinds. Overall, this was a great quarter. MongoDB is down 17.1% year-to-date and at $318.42 per share is trading 36.4% below its 52-week high of $500.90 set in February 2024. Investors who bought $1,000 worth of MongoDBs bought shares of 5 years ago would now be looking at an investment worth $2,175.
