Investors Faceplanted as MongoDB's Stock Nosedives
Ladies and gentlemen, brace yourselves! If you thought your stocks were safe, MongoDB just reminded us all that gravity is still a thing. Their stock went from $310 to $232 faster than a kid running from broccoli. That's a 7.18% drop today and a whopping 25.16% over the quarter.
CEO Dev Ittycheria, in a move reminiscent of every relationship talk that starts with "We need to talk," announced that Atlas consumption growth is slower than expected. It seems their data service for cloud databases isn’t exactly cloud nine right now.
MongoDB’s forecast? They’re expecting $460 million to $464 million in revenue and 46 to 49 cents per share, while analysts were dreaming of $473 million and 58 cents. Analysts’ hopes and dreams were swiftly dashed as the stock tumbled over 23% in the extended session. Ouch!
For the full fiscal year, they’re aiming for $1.88 billion to $1.90 billion in revenue and $2.15 to $2.30 in earnings per share. Analysts were hoping for $1.94 billion and $2.43, but hey, who’s counting?
Now, let’s look at the silver lining. Despite the current nosedive, management still sees a shiny future, especially with the AI trend. "MongoDB’s document-based architecture is perfect for AI-powered applications," said Ittycheria, in what sounded like a desperate attempt to convince everyone to stay on the sinking ship.
And it’s not just MongoDB feeling the pain. Snowflake Inc. dropped 3% and Datadog Inc. slipped 4%, making it a tough day all around for consumption-based software stocks.
So, while MongoDB tries to figure out how to make their numbers match their dreams, we’ll be here, enjoying the show. Don’t forget to tip your stockbroker!
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MonkeyGee : if MDB doesn't recover tomorrow it could start a ripple effect. first stone drop in a pond. NVDA and META will follow.
Venture118 : There goes AI
dream …
BigA670 MonkeyGee : There’s a big difference between NVDA/Meta and MongoDB.. I’ve never even heard of Mongo until now
Andrea Connally MonkeyGee : How do you think the ripple will happen. They had a horrible earnings report. Nvidia crushed theirs.