It's been a challenging year for the U.S. stock market. The S&P 500 (^GSPC 0.61%) has declined 8% from its high, and the technology-focused Nasdaq Composite (^IXIC 0.93%) has fallen 14%. However, both indexes have recovered from every past decline, so the recent losses create a no-brainer buying opportunity, especially for Nasdaq-listed technology stocks.
With that in mind, investors can purchase one share each of Shopify (SHOP 2.54%) and MongoDB (MDB 0.13%) for less than $300. Here's why both Nasdaq stocks are worth owning.
NASDAQ: SHOP
Key Data Points
Shopify: 42% upside implied by Wall Street's median target price
Shopify develops commerce software that helps merchants run their businesses across physical and digital channels. It also offers supplemental services for marketing, logistics, and cross-border commerce, as well as financial services for payments, billing, and taxes. The International Data Corp. recently ranked Shopify as a leader in digital commerce platforms for mid-market business ($100 million to $500 million in revenue).
The company's merchants collectively account for more than 12% of retail e-commerce sales in the U.S. and 6% of retail e-commerce sales in Western Europe. That makes Shopify the second largest e-commerce company behind Amazon in those geographies, and puts the company in an enviable position because online retail sales are forecast to increase at 11% annually through 2030.
Shopify was recently ranked as a leader in business-to-business (B2B) commerce solutions by Forrester Research. "Shopify has strength in innovation, as evidenced by the rapid pace of delivering features for its core B2B audience: consumer goods brands selling wholesale to small retail partners." That matters because the B2B e-commerce market is three times bigger and growing nearly twice as fast as retail e-commerce.
Shopify reported solid financial results in the fourth quarter. Revenue increased 31% to $2.8 billion, the second-straight acceleration, and non-GAAP earnings increased 29% to $0.44 per diluted share. The company also reported a 10 basis-point increase in take rate, signaling that merchants are relying more heavily on Shopify by adopting more adjacent services.
There are 55 Wall Street analysts following Shopify. The median stock price target is $135 per share, which implies 42% upside from the current share price of $95.
Earnings are expected to increase 24% in 2025, which makes the current valuation of 79 times earnings look expensive. But Shopify beat the consensus estimate by an average of 16% over the last four quarters, and I think it will continue to top expectations. With the stock 26% off its high, patient investors should feel comfortable buying today.
NASDAQ: MDB
Key Data Points
MongoDB: 73% upside implied by Wall Street's median target price
Business data usually flows from transactional to operational to analytical systems. For example, e-commerce transactions could inform operational data stored in a customer relationship management system, which itself could be queried by an analytical system. Databases that support all three workloads are called translytical platforms, and Forrester Research recently ranked MongoDB as a leader in the space.
MongoDB was recently ranked as a leader in cloud database management systems by consultancy Gartner. The report highlighted strength in transaction processing, analytical capabilities, and flexibility in supporting complex applications. Use cases range from content management and commerce to mobile games and artificial intelligence. MongoDB also ranked as the fifth-most-popular database (out of 35) in a recent survey of over 50,000 developers.
MongoDB reported solid financial results for the fourth quarter of fiscal 2025, which ended in January. Customers increased 14% to 54,500, and the number of customers that spend at least $100,000 annually climbed about 17%. In turn, revenue rose 20% to $548 million, a slight deceleration from 22% in the previous quarter, and non-GAAP net income increased 49% to $1.28 per share.
There are 37 Wall Street analysts following MongoDB. The median target price is $300 per share, implying 73% upside from the current share price of $173.
The company gave disappointing guidance that calls for earnings to decline 30% in fiscal 2026, which ends in January. That caused the stock to plunge. But its current valuation of 65 times forward earnings is the cheapest in company history. Investors should feel comfortable buying a share (or a few more) today.
