MongoDB (MDB +2.99%) stock is getting hit hard Tuesday. The database software company's share price was down 21.8% as of 11:15 a.m. ET amid 2.4% declines for both the S&P 500 and the Nasdaq Composite. The stock had been down as much as 29.8% earlier in trading.
Investors are also having a negative reaction to MongoDB"s fourth-quarter report despite better-than-expected sales and earnings for the period. The broader market is also seeing big sell-offs today as investors react to conflict expansion in the Middle East. Software stocks have already been under pressure this year as investors weigh risks posed by the disruptive impacts of artificial intelligence (AI), and the U.S. and Israel's conflict with Iran has added additional bearish pressure.
Image source: Getty Images.
MongoDB sinks despite Q4 beats
MongoDB reported its Q4 results after the market closed yesterday, posting sales and earnings that exceeded Wall Street's forecasts. The business recorded a non-GAAP (adjusted) profit of $1.65 and revenue of $695.1 million. The performance topped the average analyst estimates, which had called for per-share earnings of $1.47 on sales of roughly $669.4 million. Sales growth for the period came in at nearly 27% year over year, but investors weren't satisfied with the company's forward guidance.
NASDAQ: MDB
Key Data Points
What's next for MondoDB
For this year, management is targeting sales between $2.86 billion and $2.9 billion -- representing roughly 17% growth at the midpoint of the guidance range. Meanwhile, the company is forecasting adjusted earnings between $5.75 per share and $5.93 per share. Investors were expecting stronger growth and are selling out of the stock in response.
