MongoDB (MDB) shares are falling after the company issued weak quarterly guidance and lowered its full-year outlook.
Yahoo Finance's Seana Smith and Madison Mills break down MongoDB's latest earnings and explain how its tenuous guidance could impact the company's future.
To learn more about expert insights and the latest market trends, click here to watch this full episode of Catalysts.
This post was written by Melanie Leal
Video Transcript
Let's take a look.
Now, Mongo DB shares are falling this morning after the company weakened its quarterly outlook and lowered its full-year guidance.
Mongo D BS revenue grew 22% year over year, but growth has slowed for the third consecutive quarter.
Two years ago it was 57%.
The stock is clearly under significant downward pressure now, having plummeted again by over 26%.
This would be the biggest drop since September 2022.
Ah, here's a reminder to stop and think for a moment.
What is this company?
right?
This is a database software company that has lowered its outlook for the next four years, putting a lot of downward pressure on the stock.
This is one of the tickers that frequently appears on Yahoo Finance.
This is one of the names we continue to talk about because it's one of the names that tends to jump out of the excitement surrounding AI.
But some business fundamentals will come at a time when earnings season is in full swing.
The company has clearly been struggling and had what R BC Capital Markets called a “disappointing quarter.”
In terms of revenue and outlook, they say Shana is upping its weakest performance in a long time and is disappointing as the latest software company to issue pessimistic guidance.
Yeah.
And I think that's the most important point.
When I talk about some of the weaknesses, it's not just Mongo DB, it's not just some of the names that we've talked about in the last 24 hours, given what we've heard from our salespeople.
But this is exactly the trend we're seeing across the industry.
If you look at some of the other results, you don't have to look any further than what we get from Snowflake and the UI, you can see that Adobe is also investing in AI capabilities.
But I guess the real question is, how much of a difference will it make?
And how will that affect demand, at least in the short term?
So, obviously the market is a little bit troubled by what they've heard from Mango DB in terms of weaker than expected results and weaker than expected guidance.
And you can see that reflected in the share price reaction.
However, the move has now fallen again by more than 20%.
That was just a moment ago.
I think it's still off.
now.
It's exactly 25%.
This relates to this big volatility that we've really seen throughout earnings season.
For these companies, especially those caught up in the hype around AI, their most recent quarterly results have not lived up to expectations and their future quarterly results are often not going to beat expectations either.
We're seeing a lot of these stocks take a hit and I think you just have to look at some of the losses that we've seen with Mongo DB to get a sense of where the financial results are this quarter and where the investment sentiment and investor sentiment is.
