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Here's How MongoDB Shares Gained 11% in April

By Anders Bylund - May 6, 2021 at 4:09PM

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This gain was no victory march, but a partial rebound from the previous month's massive price drop.

What happened

Shares of MongoDB (MDB 3.22%) rose 11.2% in April 2021, according to data from S&P Global Market Intelligence. The maker of alternative database software didn't have much news to share last month. Instead, the stock quietly executed a partial rebound after plunging 30.7% in March.

So what

The March crash wasn't really MongoDB's own fault, either. The company posted fourth-quarter earnings on March 9, beating Wall Street's estimates across the board and sparking a small but short-lived bounce on the stock chart. The downward pressure resulted from widespread coronavirus vaccinations as investors started to feel like the business world might get back to normal fairly soon.

A red charting arrow follows a bar chart downward over time, making a small upward jump near the end.

Image source: Getty Images.

Now what

By and large, MongoDB has been tangled up in a broad market retreat from high-growth stocks that saw big gains in 2020, especially companies that benefit from lockdowns and/or work-from-home policies. MongoDB falls under that umbrella, serving up massive revenue gains and a 173% stock return last year.

The stock is now trading more than 40% below February's all-time highs. That makes sense if you think that MongoDB is running out of rocket fuel in a world without COVID-19, but I'm actually tempted to add a few shares to my own MongoDB holdings at these lower prices. This company has a lot of growth left to explore, with or without coronavirus lockdowns throwing additional fuel on the fire.

Anders Bylund owns shares of MongoDB. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool has a disclosure policy.

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