MongoDB's (MDB, Financial) stock experienced a significant drop of 13.69% recently, as the company released its mixed third-quarter results for FQ3 2025. The decline was primarily due to weaker-than-expected consumption trends for Atlas, its cloud-based product, which remained below last year's levels. Management anticipates this weakness will continue into the next quarter, with revenue guidance indicating a 2% sequential growth deceleration.
As of the latest update, MongoDB's share price stands at $302.20 on the NASDAQ. Despite the recent decline, the company maintains a market capitalization of approximately $22.32 billion. MongoDB's operating margin is expanding, which is generally viewed as a positive sign. The Altman Z-score of 8.76 suggests strong financial strength, and the Beneish M-Score indicates the company is unlikely to be a manipulator.
However, MongoDB currently has a price-to-book ratio (P/B) of 16.38 and a forward price-to-earnings (P/E) ratio of 93.35, which may suggest that the stock is overvalued relative to its earnings. Notably, the GF Value is calculated at $459.77, indicating that the stock is significantly undervalued at its current price. Investors can check the current GF Value for MongoDB on its GF Value page.
The company operates within the software infrastructure industry, focusing on providing a modern, general-purpose database platform. MongoDB's business model includes selling subscriptions and offering post-contract support, training, and consulting services. With nearly 33,000 paying customers and over 1.5 million free users, the company has established a solid presence in the market.
Investors should also consider some warning signs, including insider selling activity, which has been noted over the past three months with 21 transactions. Despite the insider selling, MongoDB's institutional ownership is robust at 86.35%, which reflects confidence from institutional investors.
Looking ahead, MongoDB's next earnings date is estimated to be March 7, 2025. Investors will be keenly watching for updates on Atlas's performance and any strategic measures the company plans to implement to address current challenges.
