2024-03-24 10:23:19 ET
Summary
- MongoDB's stock has declined while its peers have seen gains, with disappointing Q4 results and a weak outlook for this year.
- Risks include deceleration in growth rates, weaker usage trends, and slower customer additions.
- The company is guiding to just 13-15% y/y growth in FY25 (despite exiting Q4 of FY24 at a 27% growth rate), citing tougher comps in the prior year.
- It's also pointing to operating margin compression, driven in part by adding sales capacity.
- Despite these risks, MongoDB stock trades at a rich ~13x revenue multiple.
It's difficult to remember this maxim in a frothy market environment, but investors should always keep in the back of their heads that valuation matters . Amid all-time market highs, a rising tide will not lift all boats: especially expensive stocks that are starting to see their strong fundamental performance unwind....
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MongoDB: Growth And Margins Expected To Compress In FY25