MongoDB Stock Declines Amid Broader Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy MDB?
Source: Benzinga
MongoDB Inc. shares fell 3.95% as the stock hit a 20-day low, reflecting a challenging trading environment.
The decline comes amid a broader market downturn, with the Nasdaq-100 down 1.36% and the S&P 500 down 1.33%. This suggests a sector rotation, as investors may be reallocating their portfolios in response to market conditions. Despite MongoDB's recent initiatives to support startups and enhance AI capabilities, the overall market sentiment has negatively impacted its stock performance.
Investors are closely monitoring MongoDB's strategic moves in the AI space, particularly its new initiatives aimed at startups, which could position the company favorably in the long term. However, the current market conditions are creating headwinds for the stock.
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Analyst Views on MDB
Wall Street analysts forecast MDB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDB is 468.85 USD with a low forecast of 380.00 USD and a high forecast of 550.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
24 Buy
4 Hold
0 Sell
Strong Buy
Current: 326.500
Low
380.00
Averages
468.85
High
550.00
Current: 326.500
Low
380.00
Averages
468.85
High
550.00
About MDB
MongoDB, Inc. is a developer data platform company. Its developer data platform is a globally distributed operational database integrated with a set of data services that allow development teams to address the growing variety of application requirements. Its customers can implement its developer data platform as a managed service offering, or they can choose a self-managed option. Its MongoDB Atlas is its managed multi-cloud database-as-a-service (DBaaS) offering that includes an integrated set of databases and related services. Atlas Vector Search allows the integration of an operational database and vector search in a unified, fully managed platform. MongoDB Enterprise Advanced is its proprietary self-managed commercial offering for enterprise customers that can run in the cloud, on-premises or in a hybrid environment. It also provides professional services for its customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Snowflake Performance Outlook: Bank of America maintains a Buy rating on Snowflake with a $275 price target, anticipating its product revenue to grow at 28% year-over-year, significantly benefiting from surging data demand driven by AI data clouds.
- MongoDB Growth Potential: MongoDB's Atlas revenue grew 30% year-over-year in F3Q26, with analysts believing its application in AI workloads will further drive long-term market share growth, setting a price target of $500.
- Datadog Market Confidence: Despite competitive pressures, Bank of America analysts assert that Datadog's observability is critical, expecting a rebound in its stock price with a target of $215, emphasizing that non-AI native growth is a key metric to watch.
- JFrog AI Beneficiary: JFrog is seen as a beneficiary of AI developments, with analysts suggesting that the recent stock pullback creates a buying opportunity, targeting $74, as its cloud revenue grew 50% year-over-year in Q3 2025, indicating strong market demand.
See More
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- Market Turmoil in Software Stocks: This week, software stocks continued their decline, with the iShares Expanded Tech-Software Sector ETF (IGV) down over 9% week to date, reflecting growing market concerns about the software industry, particularly in the context of a potential unraveling AI bubble.
- Shift in Investor Sentiment: Software stocks have dropped nearly 30% from recent highs, as investors turned against trades perceived as crowded and expensive; despite the IGV surging over 58% in 2023, the current pullback is seen as a buying opportunity by some.
- Uncertain Market Outlook: While some analysts argue that the sell-off in software stocks is overdone and that established players are unlikely to be disrupted by emerging AI technologies, others caution that the current downturn may indicate deeper issues within the industry, especially among highly leveraged hyperscale companies.
- Changing Capital Flows: As funds shift from the Nasdaq to
See More
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- Seat-Based Model Struggles: Truist Securities reported that companies with predominantly seat-based business models have been the worst performers since 2025, continuing to underperform into early 2026, indicating a lack of market confidence that could lead to declining revenues and profits for these firms.
- Price Target Reductions: Truist lowered price targets for several companies, including Atlassian from $210 to $150, GitLab from $42 to $35, PagerDuty from $16 to $12, and ServiceNow from $240 to $175, reflecting analysts' cautious outlook on their future performance amid ongoing market volatility.
- Impact of AI Narratives: Truist highlighted that companies like MongoDB, JFrog, and Snowflake have benefited from AI narratives, receiving Buy ratings, suggesting these firms possess stronger growth potential in the current market environment, which may attract more investor interest.
- Overall Market Decline: The iShares Expanded Tech-Software Sector ETF (IGV) fell 2.2% today and has declined 22% year-to-date, indicating the pressure faced by the entire software sector and diminishing investor confidence in future prospects.
See More
Software Stock Sell-Off Creates Opportunities for Selective Investors
- Market Pullback Analysis: Tyler Radke, co-head of U.S. software equity research at Citigroup, noted that the current broad sell-off in software stocks appears 'overdone,' creating opportunities for selective investors, particularly in the context of the AI trade.
- Stock Performance Volatility: For instance, Palantir's stock surged 7% after reporting a fourth-quarter earnings beat but subsequently fell 12% on Wednesday, illustrating the intense market volatility and investor panic.
- Selective Investment Strategy: Radke emphasized that investors should focus on companies likely to remain relevant in the future AI trade, particularly those exposed to hyperscale data volumes, recommending stocks like Microsoft, MongoDB, and Snowflake.
- Divergent Stock Performances: On Wednesday, Microsoft and ServiceNow each gained 1%, while MongoDB and Snowflake dropped 3% and 5%, respectively, reflecting varying market expectations and confidence in different software companies.
See More
MongoDB to Report Q4 and FY 2026 Financial Results
- Earnings Release Schedule: MongoDB will report its fourth quarter and full fiscal year 2026 financial results on March 2, 2026, after U.S. market close, providing investors with critical financial data and business outlook.
- Conference Call Details: The company will host a conference call at 5:00 PM (Eastern Time) on the same day to discuss financial results and future outlook, with participants encouraged to dial in 15 minutes early to avoid delays, ensuring timely information delivery.
- Webcast Availability: The conference call will be available via a live webcast on the company's Investor Relations page, enhancing transparency and accessibility of information for investors.
- MongoDB's Market Position: As the most widely available globally distributed database, MongoDB supports over 60,000 customers and more than 75% of Fortune 100 companies, highlighting its significant role in driving industry innovation and simplifying complex architectures.
See More
Goldman Sachs Predicts 65% Surge in AI Capital Expenditure
- Surge in AI Investment: Goldman Sachs projects a 65% increase in AI capital expenditure from major tech firms this year, significantly exceeding the consensus estimate of 40%, indicating strong investment interest in AI infrastructure.
- Software Market Challenges: While hardware investments accelerate, the software market is characterized as being in an 'awkward period,' where indiscriminate selling by investors is impacting market performance despite improvements in AI models.
- Consumption-Based Revenue Models: Companies like Snowflake and MongoDB benefit from consumption-based pricing, meaning their revenues will grow as enterprises utilize and process more data, showcasing significant market potential.
- Opportunities in Industrial Applications: Goldman Sachs highlights companies like Samsara that embed AI into their core products, offering predictive maintenance and safety training, which can accelerate upselling and cross-selling to existing customers, driving further business growth.
See More
