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MongoDB (MDB) Moves 16.3% Higher: Will This Strength Last?

MongoDB (MDB) shares rallied 16.3% in the last trading session to close at $315.27. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.7% gain over the past four weeks.

The upswing in share price came after the company reported impressive first-quarter fiscal 2022 revenue growth of 39.4% year over year to $181.6 million, fueled by solid user growth on the back of robust uptake of Atlas.

The company’s Atlas revenues soared 73% year over year. Atlas had more than 25,300 customers at the end of the reported quarter, adding 2,000 customers sequentially.

This database platform is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of -59.1%. Revenues are expected to be $179.87 million, up 30.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For MongoDB, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MDB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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