June 5 - Shares of MongoDB (MDB, Financial) climbed about 17% in Thursday's premarket trading after the company topped expectations for its fiscal first quarter and raised full-year guidance, according to a press release.
Revenue for the quarter grew 6%, driven by stronger-than-expected performance from its cloud database product, Atlas. Analysts from Wedbush, BofA Securities, and Morgan Stanley reiterated their bullish stance on the stock, pointing to improving business momentum and AI-driven opportunities.
Atlas revenue came in at $395 million, growing 1.3% from the previous quarter, outperforming guidance. MongoDB also added a record 2,700 new customers in the period. Non-Atlas segments, including Enterprise Advanced, generated $136 million, slightly ahead of forecasts.
Wedbush maintained its “Outperform” rating with a $300 price target, citing growing demand for legacy modernization and AI adoption. The firm highlighted the impact of the Voyage AI acquisition and said MongoDB is in the early stages of unlocking value from Atlas.
Morgan Stanley lifted its price target to $255 from $235, while BofA reaffirmed its $275 target. Analysts said Atlas growth of 26% year-over-year and strong customer trends support long-term upside.
Mike Berry took over as CFO on May 27, with analysts expecting a smooth transition.
