Should You Buy the Post-Earnings Pop in MongoDB Stock?

MongoDB (MDB) shares soared over 35% on Wednesday after the database firm came in handily above Street estimates in its fiscal Q2 and raised its guidance. 

MDB improved its operating margins and added 5,000 customers in the last six months.

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Following today’s surge, MongoDB stock is trading more than 100% above its April low but is still down slightly versus its year-to-date high of about $299. 

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Management’s Remarks Suggest Further Upside in MongoDB Stock

Despite an explosive rally in MDB stock since early April, management remains bullish on what the future holds for the Nasdaq-listed firm. 

“The opportunity in front of us is massive,” CEO Dev Ittycheria told CNBC in a post-earnings interview, adding the company currently owns just 2% of what is an estimated $100 billion total addressable market (TAM). 

Additionally, the chief executive also cited artificial intelligence (AI) tailwinds, which may help the MongoDB share price rip higher from here in the second half of 2025. 

Note that Atlas, the firm’s fully managed, cloud-based database service, jumped another 29% year-over-year in Q2. 

The MDB Share Price Rally May Have Gone a Bit Too Far

While the numbers MongoDB reported for its second quarter sure were “encouraging,” Macquarie analysts maintained their “Neutral” rating on the database company today. 

In its research note, the investment firm lauded MDB’s strategic shift in its go-to-market approach, but cited valuation concerns for its cautious view.  

Macquarie raised its price target on MDB shares following the earnings release to $265 but that still represents potential downside of 10% from current levels. 

Wall Street Rates MongoDB Shares at ‘Strong Buy’

Other Wall Street firms also agree with Macquarie’s cautious view and recommend waiting for a dip before initiating a new position in MDB shares. 

While the consensus rating on MongoDB stock remains at “Strong Buy,” the mean target of roughly $279 suggests potential downside of some 6% from here. 

However, some analysts may soon revise their estimates upwardly following today’s blockbuster earnings release.  

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.