MongoDB shares tumbled 13.54% to $375.40 after the database software company's second-quarter results, a sharp reversal for a stock that had climbed 22.02% over the prior 30 trading days. The move came even though MongoDB beat Wall Street's earnings and revenue estimates and raised its full-year guidance, underscoring how much investors had already priced into the stock heading into the print.
The quarterly numbers themselves were strong. MongoDB posted adjusted earnings per share of $1.90, well above the $1.61 estimate, on revenue of $771.773 million versus expectations of $732.908 million. The company also raised its fiscal 2027 adjusted EPS guidance to a range of $6.39 to $6.58 from $5.95 to $6.14, and lifted its full-year sales outlook to $2.990 billion to $3.030 billion from $2.920 billion to $2.960 billion. Coverage tied the stock's slide to concerns about slowing third-quarter guidance and flat growth in its Atlas cloud database business, which overshadowed the headline beat.
Despite the drop, the sell-side response was mostly supportive. Piper Sandler's Rob Owens, Canaccord Genuity's Kingsley Crane, Bernstein's Firoz Valliji, Mizuho's Matthew Broome and Barclays' Raimo Lenschow all raised their price targets, with Canaccord and Barclays each pushing theirs to $480. Citizens' Patrick Walravens and Guggenheim's Howard Ma held firm at $519 and $560 respectively, while Cantor Fitzgerald's Thomas Blakey maintained a $540 target after having already raised it earlier in the week. Not every shop stayed bullish on price: UBS's Karl Keirstead cut his target to $410 while keeping a Neutral rating, and RBC Capital's Rishi Jaluria and BMO Capital's Keith Bachman trimmed their targets to $465 and $450 while maintaining Outperform ratings.
The stock's swing also stood out against a broader software selloff the same morning, where MongoDB, Credo Technology and Palo Alto Networks all fell despite beating quarterly estimates as costs rose. With shares still well below the 52-week high of $473.10 and far above the 52-week low of $215.68, the next test will be whether Atlas usage trends and third-quarter results validate the guidance concerns that drove the drop or whether the raised full-year outlook reasserts itself as the more important signal.