Party Like It’s … December 2022?!? (MDB Q1 FY1/25 Earnings Review)

Party Like It’s … December 2022?!? (MDB Q1 FY1/25 Earnings Review)
Photo by Sunder Muthukumaran / Unsplash

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Going, Going …

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Can The Plates Spin Up Once More?

MongoDB ($MDB) is the very definition of a high-beta stock. As in, it overreacts vs. the S&P500. No wait. It is a manic-depressive stock which is either zooming up for no particular reason or, as happened yesterday, dumping back to bear market levels for the crime of seeing margins drop a little and growth being a little soggy. Which, I might point out, isn’t so different to what ZScaler told the market yesterday, and that thing is up 16% at the time of writing (7am Eastern). Now, personally, I am long ZS and I took gains in MDB many months back, so I am not complaining for my own accounts; but it just goes to show that many things conflate to deliver a stock price reaction; it’s not all about the numbers.

MDB is back at the levels last seen in December 2022 and as a result we move to Accumulate rating - though not without some concerns on the fundamental front, I have to say.

Here’s the headlines.

Summary Financials

Now let’s get into the detail and why o why it may be sensible to start building a position in this loser around now.