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Bull of the Day: MongoDB (MDB)

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Key Takeaways

  • MongoDB's Microsoft partnership is bearing fruit for the company.
  • MDB consistently beats Wall St. expectations and recently reported strong Q3 results.
  • The robust technical action following EPS signals heavy accumulation in the stock.

MDB Company Overview and Bull Case

Zacks Rank #1 (Strong Buy) stock MongoDB ((MDB - Free Report) is a leading database software company. Think of a traditional database (like a spreadsheet or filing cabinet) as being very rigid: you have to decide exactly how many columns your data will have before you put anything in it. If you want to add new information later, you must stop everything and restructure the entire cabinet. Conversely, MDB technology stores data in self-contained folders that can hold anything – text, photos, video links, or lists – all in one place. Additionally, MDB’s product is unique because:

·       There are No Rigid Rules (Flexible Schema): You don't have to define a strict structure upfront. If you have 100 customer folders, and you decide you want to track a new "loyalty points" field, you just add it to the following folder you create. The other 99 folders don't need to change. This is called a flexible schema.

·       It is Built for Speed and Scale: Because modern applications (like a popular social media app or an e-commerce site) serve millions of users and ingest new data every minute, MongoDB is designed to scale easily and handle massive amounts of data very quickly. It can simply add more "cabinets" (servers) to store data horizontally.

·       The Main Product: Atlas: The company's main business is MongoDB Atlas, which is like an easy button for this robust database. It's a cloud service that lets developers use the MongoDB database without worrying about setting up or maintaining the servers. They just pay to use the database as a service.

Microsoft Partnership Helps MDB Break Into AI

MDB has a partnership with tech giant Microsoft ((MSFT - Free Report) ) that enables Atlas to be deeply integrated into Microsoft’s Azure cloud platform. Clients can now plug Atlas into Microsoft Azure to utilize its AI tools. The Microsoft partnership is critical for helping MDB gain a share of the rapidly growing AI market. The good news for MDB investors is that MongoDB was named the 2025 ‘Microsoft United States Partner of the Year.’

MDB: A Consistent EPS Outperformer

Wall Street is a game of expectations, and MDB has illustrated that it’s capable of delivering. Over the past four quarters, it has surpassed Zacks Consensus Analyst Estimates by a juicy 69.30%.

Zacks Investment Research
Image Source: Zacks Investment Research

MDB Reports Stellar EPS

Last week, MongoDB delivered strong third-quarter results that exceeded the high end of their guidance, driven by continued strength in Atlas, which saw growth accelerate 30% year-over-year.  Meanwhile, total revenue and subscription revenue grew 19% year-over-year as margins expanded. Finally, MDB raised its guidance. The company now expects EPS growth of ~30% and revenue growth of 20%.

MDB Technical View: An EPS-Induced Breakaway Gap

Following the early December earnings release, MDB shares spiked 22% as trading volume swelled to more than 4x the norm – a sign of heavy demand. Despite the large upside move, the stock has traded sideways since EPS, indicating that although investors have large profits in the stock, they are unwilling to part with their shares.

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Image Source: TradingView

Bottom Line

MongoDB’s flexible architecture, cloud-first Atlas platform, and strategic partnership with Microsoft give the company a powerful runway for AI-driven growth. With a track record of earnings outperformance and fresh momentum following EPS, MDB shares are a buy.


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