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MongoDB stock sinks after lowering full-year guidance

Shares of MongoDB (MDB) are sliding after the company issued soft guidance for the quarter and lowered its forecast for the full fiscal year.

Yahoo Finance's Seana Smith and Madison Mills break down MongoDB's latest earnings and what the light guidance could signal for the company's future.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl

Video transcript

We're going to take a look.

Now at some trending, take our shares of Mongo DB are sliding this morning after the company issued light guidance for the quarter and reduced its forecast for the full fiscal year.

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Mongo D BS revenue did grow 22% year over year, but growth slowed for the third consecutive quarter.

It was 57% 2 years ago.

Now, obviously seen a lot of downward pressure on the stock again plummeting over 26%.

That's their biggest fall since September of 2022.

Uh This is as a reminder just to take a step back.

What is this company?

Right?

This is a database software company cutting their four year forecast, putting a lot of downward pressure on this name.

This is one of those tickers that pops up a lot here at Yahoo Finance.

So it's one of those names that we continue to talk about because it is one of those names that tends to move off of the excitement surrounding A I.

But when it comes to the business fundamentals that you're gonna be getting when it's in the middle of earnings season.

This is a company that is clearly struggling with, that has had a what R BC capital markets calls a disappointing quarter.

The skinniest beat in a long time in terms of revenue and the outlook Shana they're saying is underwhelming the latest software company company to come out with downbeat guidance.

Yeah.

And I think that's the most important point, right.

When we talk about some of the weakness, it's not only Mongo DB, it's not only some of the names that we talked about in the last 24 hours when we take into account what we heard from sales force.

But it's really this trend that we have seen industry wide.

When you take a look at some of those other results, you don't have to look any further than the results that we got out from snowflake from you U I have from even Adobe here, they are investing in their A I capabilities.

But I think the real question is how much is that going to move the needle?

And what is that really going to do to demand at least in the short term?

So when it comes to some of those weaker than expected results or weaker than expected guidance, obviously the street taking a bit of issue with what they just heard from a Mango DB.

And we're seeing that reflected in the stock price reaction.

But again, this move of it's off over 20%.

It was earlier.

I believe it's still off yet.

Now.

Just around 25%.

This goes back to this ma these massive swings that we've seen really over the course of the earnings season.

If we're seeing any of these companies, especially ones who have been caught up in some of the hype surrounding A I if they don't meet expectations and many times that they don't significantly exceed expectations when it comes on the most recent quarter and also what they expect to see here in coming quarters.

We're seeing many of these stocks punished and I don't think you have to look any further than some of the losses we're seeing in Mongo DB to really tell the story of this earnings season and where investment sentiment lies, investor sentiment lies.