Please ensure Javascript is enabled for purposes of website accessibility

Why MongoDB Stock Soared 24.5% in January

By Steve Symington - Feb 11, 2020 at 8:19AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The NoSQL database leader rebounded from December's surprising decline with a little help from Wall Street.

What happened

Shares of MongoDB (MDB 1.13%) climbed 24.5% in January, according to data from S&P Global Market Intelligence, as multiple analysts weighed in with positive notes on the database software leader.

So what

For perspective, MongoDB only just fell 11.5% in December, giving up its initial post-earnings gains even after the company's third-quarter results handily exceeded Wall Street's expectations. Perhaps it should have come as no surprise, then, when Piper Sandler analyst Brent Bracelin singled out MongoDB on Jan. 8 as one of his top software-as-a-service (SaaS) stock ideas with "multibillion potential" for the coming decade.

Stock market data showing volatility on a colorful display.

Image source: Getty Images.

Shares continued to rise later that week when Barclays analyst Raimo Lenschow named MongoDB as one of several SaaS growth stocks investors should own this year as the cloud computing sector continues to outpace the broader market's gains.

Now what

Indeed, MongoDB should benefit as the world increasingly embraces the need to organize and utilize hoards of unstructured data like pictures, audio, and video files -- a task to which MongoDB's flagship NoSQL database structures are uniquely well suited. So while it's hard to argue that this fast-growing, currently unprofitable stock is "cheap" by traditional valuation methods (it trades at an eye-watering 24.6 times trailing-12-month sales as of this writing), it's no surprise to see growth-hungry investors placing calculated bets that the best is yet to come.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MongoDB Stock Quote
$248.10 (1.13%) $2.77

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.