What happened

Share of database company MongoDB (NASDAQ:MDB) were down 11.8% at 3 p.m. EST on Monday. There was no company-specific news. Instead, the stock appears to just be following the broader stock market lower.

So what

The Nasdaq Composite was down about 2.7% with an hour of trading left on Monday, and MongoDB likely just got caught up in the selling. A sky-high valuation may also be playing a role. The company is far from profitable on any basis, and it generated just $192 million of revenue over the past 12 months. That puts the price-to-sales ratio at roughly 16.

A declining chart.

Image source: Getty Images.

MongoDB isn't hurting for growth. Second-quarter revenue soared 61% year over year, and the number of total customers jumped 71%. Atlas, the company's managed database offering, grew by 400%. Those are all impressive numbers, but they're not helping the stock escape a tumbling market.

Now what

The company will need to keep up its exceptional growth rate and move toward profitability to maintain its nosebleed valuation. Its long-term prospects look bright, but it may take a while for the numbers to catch up with the valuation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.