Veteran analyst sounds alarm after MongoDB stock soars 38 percent
Aug 28, 2025 9:47 AM EDT
MongoDB stock (MDB) soared 37.96% on Aug. 27, after the database platform developer posted its latest earnings that beat Wall Street analysts’ estimates.
For the fiscal second quarter, the company reported adjusted earnings of $1 per share on revenue of $591 million, beating Wall Street's estimate of 66 cents per share on revenue of $556 million.
The revenue increased 24% year-over-year, with sales of Atlas, the company’s cloud database service, rising 29% from a year ago.
MongoDB provides several different database platforms for different-sized customers. However, the firm said it has been pursuing deals with larger clients while pulling back small- to mid-size customers.
CEO Dev Ittcheria said this strategy has been "really paying dividends."
The company also said it added more than 5,000 customers year to date, which was “the highest ever in the first half of the year.”
For the current quarter, the company expects adjusted earnings per share between 76 and 79 cents and revenue of $587 million to $592 million, both exceeding analysts' expectations.
Despite strong earnings and outlooks, MongoDB is trading at an elevated valuation, making the stock look more expensive than that of most software peers and raising concerns about how much upside is left.
Analysts revamp MongoDB stock after earnings
Several analysts have raised their price targets for MongoDB after earnings.
Citi analyst Tyler Radke raised the firm's price target on MongoDB to $425 from $405 with a buy rating. The new target is the highest among Wall Street analysts.
Radke said in a research report that the earnings marked an "inflection" for the company.
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