MongoDB (MDB) stock is sinking Tuesday even after the document database platform beat top- and bottom-line expectations for its fiscal 2025 third quarter and raised its full-year outlook.
In the three months ended October 31, MongoDB's revenue increased 22.2% year over year to $529.4 million. Its earnings per share (EPS) rose 20.8% from the year-ago period to $1.16.
"MongoDB's third-quarter results were significantly ahead of expectations on the top and bottom line, driven by better-than-expected EA performance and 26% Atlas revenue growth," said CEO Dev Ittycheria in a statement. "We continue to see success winning new business due to the superiority of MongoDB's developer data platform in addressing a wide variety of mission-critical use cases."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $498 million and earnings of 67 cents per share, according to Investor's Business Daily.
As a result of its strong performance, MongoDB raised its full-year outlook. The company now anticipates fiscal 2025 revenue in the range of $1.973 billion to $1.977 billion and earnings per share of $3.01 to $3.03. This is up from its previous forecast for revenue of $1.92 billion to $1.93 billion and EPS of $2.33 to $2.47.
For its fiscal fourth quarter, MongoDB expects to achieve revenue between $515 million and $519 million, well ahead of analysts' expectations of $509 million.
"MongoDB is in a great position to be a central pillar of the emerging artificial intelligence (AI) tech stack and benefit from the next wave of application development in the years ahead," Ittycheria said.
However, the positive sentiment around the earnings beat faded when MongoDB announced that Michael Gordon, its chief operating officer and chief financial officer, will be stepping down on January 31, 2025. Executive departures can be seen as a loss of expertise or signal uncertainty about the future of a company.
Is MongoDB stock a buy, sell or hold?
It's been a rough year on the price charts for MongoDB, down nearly 26% since the start of 2024. Yet, Wall Street remains bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for MDB stock is $376.92, representing implied upside of nearly 25% to current levels. Additionally, the consensus recommendation is Buy.
Needham is one of those with a Buy rating on the large-cap stock and the financial services firm raised its price target on MDB to $415 from $335 following the earnings beat.
"MongoDB reported solid fiscal third-quarter results, with the majority of revenue upside from better than expected multi-year upfront license contribution," says Needham analyst Mike Cikos. "We believe the company is leading the pack in addressing the next-generation database market, which MongoDB calibrates at around $85 billion today growing to $138 billion in calendar year 2026."
Related Content
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market TodayThe main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Retirement Health Care Costs Are On the Rise: What You Need to KnowA 65-year-old retiree will face significantly higher lifetime health care costs than they would have a year ago, even with Medicare. Here are the surprising totals.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
How to Invest for a Fall Interest Rate Cut by the FedA lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
Three Ways to Find Deals in Your Investments This YearLooking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
You Don't Have to Be Wealthy to Need a Wealth ManagerNavigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European EquitiesEuropean equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
What Federal Interest Rates Mean for Your Grocery BillThe relationship between grocery prices and the Federal Reserve has plenty of back-and-forth. Understand how they interplay.
-
5 Undervalued Stocks to Buy NowThere are plenty of high-quality undervalued stocks to buy right now, you just need to know where to look. Here, we highlight five of our top picks.
