Why MongoDB, Inc. Stock Gained 33% Last Month

What happened

Shares of database systems specialist MongoDB (NASDAQ: MDB) rose 33% higher in August of 2018, according to data from S&P Global Market Intelligence. In a month with few notable trigger events, MongoDB kept its unstoppable market momentum going via a flurry of analyst notes. The stock has now tripled in value since its initial public offering in October of 2017.

So what

MongoDB is set to report second-quarter results on Wednesday, and analyst firms have been preparing for that event with a plethora of upgrades and boosted target prices in recent weeks.

Image source: Getty Images.

Now what

Citing MongoDB’s steady stream of partner announcements and new product releases, Needham analyst Jack Andrews argued that the company could “capture [a] meaningful share of the $45 billion database market.” That’s a mighty bullish statement, given that MongoDB’s annual sales currently stop at roughly $170 million.

That being said, MongoDB is an established leader in the field of NoSQL database architectures. These unstructured databases are a perfect fit for unpredictable data feeds, positioning MongoDB to ride macro trends built on exactly that type of data, such as the Internet of Things and cloud computing.

This stock is a hot ticker among some Fool.com contributors. Fellow Fool Billy Duberstein recently bought shares of MongoDB based on similar reasoning, while Keith Speights barely can keep his trigger finger off the “buy” button for the stock today. I think my colleagues are on the right track.

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool has a disclosure policy.

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