MDB - MongoDB: Reeling From A Guidance Cut (Upgrading To Neutral)

2024-05-31 11:28:33 ET

Summary

• MongoDB's stock experienced a significant decline after releasing Q1 results and lowering its full-year outlook, citing a soft macro environment and slower customer adds.
• The company's growth rates have decelerated sharply, and its margins have been affected by heavy investment in opex.
• The stock now trades at a more reasonable valuation of 8.6x current-year revenue (previously in the low teens).
• Upgrading MongoDB to neutral as there is potential for short-term trading profits here.

A pessimistic earnings season for tech stocks continues in full force, and the latest victim is MongoDB ( MDB ). The non-relational database software company suffered one of its largest one-day declines on record after releasing Q1 results and lowering its full-year outlook....

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