MDB - Why MongoDB Plunged Over 35% in May
2024-06-05 08:05:00 ET
Shares of database software up-and-comer MongoDB (NASDAQ: MDB) cratered 35.4% in May, according to data from S&P Global Market Intelligence.
MongoDB happened to report first-quarter earnings on May 30, and the subsequent reaction on the final day of the month accounted for a bulk of the decline. While revenue and non-GAAP (adjusted) earnings per share (EPS) beat expectations, management's forward-looking guidance caused shares to plunge.
MongoDB is a new kind of database company based on something called a "document" architecture, a more flexible kind of format compared with legacy relational databases, and better suited for storing and processing both structured and unstructured data (images, videos, social media posts). Thus, adoption of the company's software has taken off over the six and a half years since MongoDB went public.
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Why MongoDB Plunged Over 35% in May