Please ensure Javascript is enabled for purposes of website accessibility

Here's Why MongoDB's Stock Tumbled Today

By Chris Neiger – Updated Jun 5, 2020 at 1:42PM

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

Investors weren't happy with the company's first-quarter results.

What happened

Shares of MongoDB (MDB 0.67%), an open-source database company, were falling today after the company reported its first-quarter 2021 results yesterday.

As of 1:06 p.m. EDT, the company's stock price was down 7.3%.

So what

MongoDB's revenue increased by 46% to $130.3 million in the first quarter, and the company reported a non-GAAP loss per share of $0.13. The company's results beat analysts' consensus estimates of a loss per share of $0.25 and revenue of $83.1 million.

MongoDB's chief executive officer, Dev Ittycheria, said on the company's first-quarter investor call, "Delivering such strong Q1 results in the midst of the COVID-19 crisis and the associated economic disruption is a testament to the resiliency of our employees, the quality of our execution, the appeal of our technology and our positioning in the marketplace."

A red line chart going down.

Image source: Getty Images.

But despite the company's revenue and earnings beat in the quarter, investors weren't as optimistic as MongoDB's management. The share price drop today is a reversal of the company's stock gain of more than 27.4% over the past three months.

Now what

MongoDB's management issued second-quarter guidance with revenue expected to be $126 million and the company seeing a loss per share of more than $0.39, both at the midpoint. For the full year, management estimates that sales will reach $525 million with a loss of about $1.28 per share.

For now, investors appear to be looking for something more from MongoDB despite the company's earnings beat in the most recent quarter.

Chris Neiger 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.

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
MongoDB
MDB
$204.67 (0.67%) $1.36

*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 analyst team.

Stock Advisor Returns
342%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

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.