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Why MongoDB Stock Jumped 18.7% Last Month

By Keith Noonan - Updated May 6, 2020 at 12:59PM

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The database-services stock is up more 30% year to date, while the S&P 500 index has dipped roughly 11%.

What happened

Shares of MongoDB (MDB 2.80%) climbed 18.7% in April, according to data from S&P Global Market Intelligence. The cloud-database stock posted big gains as the broader market rebounded from the coronavirus-related sell-off in March.  

^SPX Chart

^SPX data by YCharts

Concerns about the novel coronavirus rocked the market in March, but MongoDB held up relatively well for a growth-dependent tech stock. Shares fell just 10.5% in March's trading, while the S&P 500 index slid 13%. MongoDB's April gains more than covered what it lost in the previous month, and the company's share price is off just 7% from the record high it hit in February.

A cloud icon.

Image source: Getty Images.

So what

Resilient demand for MongoDB's cloud-database services has helped the stock perform well despite market volatility. The company published fourth-quarter results on March 17 and issued encouraging guidance for the first quarter and current fiscal year with the report.

The company guided for a non-GAAP (adjusted) loss per share between $0.22 and $0.25 on revenue between $119 million and $121 million in the first quarter. For comparison, MongoDB posted an adjusted loss per share of $0.22 on sales of $89.4 million in the prior-year period.

Management noted that the novel coronavirus situation was uncertain and changing rapidly when it issued guidance, and the company's outlook may have shifted since. However, the business' momentum over the last year has been impressive.

Now what

MongoDB stock has continued to climb in May's trading. Shares are up roughly 7.5% in the month so far, while the S&P 500's level has dipped roughly 2.4%. 

The company's recent full-year guidance targeted revenue between $510 million and $530 million and an adjusted annual loss per share between $1.23 and $1.40. As a result of conditions created by the novel coronavirus, MongoDB's guidance accounts for missing out on revenue between $1 million and $2 million in the first quarter and between $15 million and $25 million for the full-year period.

MongoDB is valued at roughly 19 times this year's expected sales. 

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool has a disclosure policy.

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