What happened
Shares of database software maker MongoDB (MDB 1.43%) are falling again on Friday. The stock dipped as much as 9.3% lower in the morning before recovering to a 7.5% drop at noon EDT. The stock has now fallen 16% in two days following MongoDB's fantastic second-quarter earnings report.
So what
MongoDB's stock fell hard on Thursday despite a great earnings report. Sales rose 39% year over year to $138 million and net losses improved from $0.26 to $0.22 per share. Your average analyst would have settled for a net loss of $0.39 per share on revenue near $127 million. Guidance for the third quarter also left the current Street view far behind. Analyst firms showered the stock in upgrades and raised price targets after the report but the stock fell anyway.
Image source: Getty Images.
Now what
The market gave high-flying tech stocks a thorough beating on Thursday and the same trend carried over into Friday's action. Call it profit-taking, call it concerns that the tech sector might be overvalued, call it a correction after several months of market-beating gains -- all of these arguments factored into this sharp two-day drop in the tech sector as a whole and for MongoDB in particular.
Let me show you what I mean. Both MongoDB and tech stocks as a whole are still crushing the market in 2020, even after this sudden correction:
