- MongoDB ( NASDAQ: MDB ) shares slipped on Friday, even as investment firm Bernstein started coverage on the developer platform company with an outperform rating.
- Analyst Mark Moerdler called MongoDB ( MDB ) a "best-of-breed, new-generation, database vendor" that is going against big companies such as Microsoft ( MSFT ) and Amazon ( AMZN ) in the database software market.
- "We think [MongoDB] can sustain growth, despite competition," Moerdler wrote, adding that the company's technology is ahead of Microsoft's ( MSFT ) and Amazon ( AMZN ) Web Services.
- Moerdler added that the database software market is large, expected to be worth roughly $37B in 2025 and growing fast, at a 25% compound annual growth rate between 2021 and 2025.
- Since MongoDB ( MDB ) is significantly smaller than either Microsoft ( MSFT ) or Amazon ( AMZN ), at just $1.3B in current annual revenue rate, it can grow without needing to take "significant market share," Moerdler explained.
- MongoDB ( MDB ) shares fell 1% in premarket trading, following Thursday's 7% fall .
- Last month, Citi said MongoDB ( MDB ) was among the firm's favorite stocks in the enterprise application software space .
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MongoDB slips even as Bernstein starts coverage, calls it 'best of breed'