MDB stock has declined 38% in the past year due to challenges in the market, but remains a strong buy.

From Nasdaq: 2025-01-21 13:02:00

MongoDB (MDB) shares have declined by 37.6% in the past year, falling behind the Computer and Technology sector’s 27.8% and Internet – Software industry’s 30.7% growth. MDB also trails industry peers like Bill Holdings (BILL) and Domo, with BILL shares up 18.4% and Domo shares down 26.6%.

The decline in MongoDB’s stock price is attributed to macroeconomic challenges, slow AI application modernization, and limited progress in legacy modernization. Intense competition in the database market has impacted customer acquisition and growth prospects, leading to challenges for the company.

Despite the hurdles, MongoDB is investing in enterprise channel expansion and AI technologies to drive long-term growth. The company’s positive outlook for fiscal year 2025 includes expected revenues of $515-$519 million in Q4 and $1.973-$1.977 billion for the full year, with non-GAAP earnings per share between 62 cents and 65 cents.

Analysts estimate a 13.01% year-over-year revenue growth for Q4 2025 and a 25.58% decline in earnings. For fiscal year 2025, revenue growth is projected at 17.39% with a 9.01% decrease in earnings. MongoDB has consistently beaten earnings estimates in the past, with an average surprise of 58.78%.

MongoDB’s robust product portfolio, including the innovative Atlas platform, and strategic partnerships are driving its growth. The company’s recent product launches and advanced capabilities are enhancing customer experience and solidifying its position in the database market.

With a focus on enterprise accounts and legacy application modernization, MongoDB aims to accelerate growth. The company’s strong innovation, partnerships, and expanding client base position it well for long-term success, justifying its premium valuation and investment potential.

MongoDB currently holds a Zacks Rank #2 (Buy) and a Growth Score of A, indicating a strong investment opportunity. The company’s strategic initiatives and market position make it a compelling choice for investors seeking growth and value in the technology sector.



Read more at Nasdaq: MDB Stock Declines 38% in a Year: Here’s Why it is Time to Buy