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How MongoDB Beat Amazon

By Jeremy Bowman and Brian Withers – Updated Oct 12, 2021 at 8:10AM

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Amazon played copycat. MongoDB responded.

Editor's note: Amazon's DocumentDB has never included any MongoDB source code.

When Amazon (AMZN -0.64%) launched DocumentDB, its new database service, in 2019, some thought it would be a MongoDB (MDB 3.31%) killer. Mongo shares plunged on the news, but the company responded, and posted its fastest growth in over a year in the second quarter, showing that worries about Amazon were nothing more than that.

In this episode of "Beat and Raise" recorded on Sept. 3, Fool contributors Jeremy Bowman and Brian Withers discuss how MongoDB responded to the Amazon threat.

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Jeremy Bowman: One thing I like about them too, I mentioned Amazon (AMZN -0.64%) before, Amazon introduced their own DocumentDB, their competitor for MongoDB, a couple of years ago, and that shifted the stock a bit. Anytime Amazon enters a market, investors get scared. But I think the company, certainly based on the latest round of results, the growth in Atlas has shown that it doesn't really matter, they work with AWS as well. I think we've seen a lot of stocks like Etsy and Shopify, are two that come to mind, that fended off challenges from Amazon and have gone on to do good things. That's another reason why I'm encouraged about MongoDB, especially after the 26 percent jump. Like today, I should mentioned, I do own some shares in the stock.

Brian Withers: Awesome. Hey, Jeremy, let me make a comment on that. You brought up the Amazon thing. That's quite in our rear view mirror now with MongoDB. I remember when Amazon came out, initially, MongoDB was open source. Amazon being Amazon took their open source and started hosting it and charging customers for it. Luckily, that version of MongoDB, they've fixed that version. That's the last version that customers can use open source. They've significantly upgraded it since then and made the transactions. There's some key quality pieces that customers look forward to run enterprise applications. It's called ACID, A-C-I-D, and it stands for four different specific quality things. I unfortunately can't remember all of them right now. But basically, it makes sure that if you move data from here to here, it's subtracted out on one side and added in on the other side, and it doesn't appear in both places. That was a key upgrade for Mongo. It seems like since then, they haven't looked back.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman owns shares of Amazon, Etsy, and MongoDB. The Motley Fool owns shares of and recommends Amazon, Etsy, MongoDB, and Shopify. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.

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Stocks Mentioned

MongoDB Stock Quote
MongoDB
MDB
$157.74 (3.31%) $5.05
Amazon.com Stock Quote
Amazon.com
AMZN
$95.92 (-0.64%) $0.62
Shopify Stock Quote
Shopify
SHOP
$43.14 (5.53%) $2.26
Etsy Stock Quote
Etsy
ETSY
$137.87 (4.37%) $5.78

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

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