MongoDB shares plummet 27% on weak growth in cloud business, muted forecast
MongoDB's shares plunged 27% to a six-month low on Tuesday after the software firm forecast first-quarter profit below estimates and disappointed investors with slower quarterly revenue growth for its cloud database product Atlas. Revenue in the Atlas business, seen as a beneficiary of growing AI adoption, rose 29% in the fourth quarter ended January 31, down from 30% in the previous quarter, with UBS analysts highlighting that MongoDB did not offer a concrete explanation for the relatively softer performance. More than 19 of 42 analysts covering the stock lowered their price targets after the results, LSEG data showed.
MongoDB's shares plunged 27% to a six-month low on Tuesday after the software firm forecast first-quarter profit below estimates and disappointed investors with slower quarterly revenue growth for its cloud database product Atlas. Revenue in the Atlas business, seen as a beneficiary of growing AI adoption, rose 29% in the fourth quarter ended January 31, down from 30% in the previous quarter, with UBS analysts highlighting that MongoDB did not offer a concrete explanation for the relatively softer performance. More than 19 of 42 analysts covering the stock lowered their price targets after the results, LSEG data showed.
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