MongoDB Demolishes Earnings Expectations, Stock Rips Higher

MongoDB nearly doubled Q2 earnings estimates

MongoDB Inc (NASDAQ:MDB) stepped into the earnings confessional after last night’s close. The software upstart reported second-quarter earnings and revenue that topped Wall Street’s expectations and hinted at more artificial intelligence (AI) integration. In response, MDB was last seen 4.9% higher at $399.82. 

The database software maker’s earnings of 93 cents per share more than doubled forecasts, while its $423.8 million in revenue also crushed estimates. The company also issued a stronger-than-expected full-year outlook, with CEO Dev Ittycheria saying its “at the early stages of AI powering the next wave of application development.” 

Following the results, no less than nine analysts hiked their price targets, including Piper Sandler to $425 from $400 after noting re-accelerated growth amid multi-year licensing deals and renewal expansions.

Options traders are active after the report. Already today, 12,000 calls and 8,406 puts have been exchanged, total volume that is 16 times the amount typically seen at this point. These traders are betting on more upside today, too, with new positions opening at the most popular contract, the weekly 9/1 430-strike call. 

Today’s pop helped MongoDB stock jump back above its 50-day moving average, which served as overhead pressure in early August. Out of the gate, the equity jumped above the $400 level, though it’s hovering just below that mark now. Year to date, MDB is up roughly 106%.

 

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