MDB Stock Sees Biggest Single-Day Decline On Record: Wall Street Cuts Price Targets On Slower Atlas Growth And Cautious Outlook

• Baird cited slower-than-expected growth in Atlas revenue, raising potential questions about the company’s momentum.
• Barclays analyst Raimo Lenschow trimmed the price target to $370 from $440 while maintaining an ‘Overweight’ rating.
• Wedbush noted that strong quarterly results were overshadowed by a cautious outlook.

MongoDB Inc. (MDB) is facing scrutiny on Wall Street as multiple analysts adjusted their outlooks following the company's fourth-quarter earnings report. 

While the database software provider posted solid fourth-quarter (Q4) results, concerns over revenue growth and management shifts are weighing on investor sentiment.

Baird downgraded MongoDB to ‘Neutral’ from ‘Outperform’, lowering its price target to $260 from $500, according to TheFly. MongoDB forecasts first-quarter (Q1) adjusted earnings per share (EPS) between $1.15 and $1.19 per share, which is lower than the analysts’ consensus estimate of $1.21 per share.  

Baird And Barclays’ Analysis 

Baird cited slower-than-expected growth in Atlas revenue, raising potential questions about the company’s momentum, despite generally strong quarterly results. The firm highlighted limited AI-related revenue and recent leadership changes as additional factors that could create pressure on the stock.

Barclays analyst Raimo Lenschow trimmed the price target to $370 from $440 while maintaining an ‘Overweight’ rating. The firm noted that while MongoDB had a string of strong quarters before, the Q4 results showed a slightly smaller Atlas revenue beat and guidance for fiscal 2027. 

MongoDB stock tumbled nearly 28% on Tuesday, marking its biggest single-day decline on record. On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘normal’ levels in 24 hours. 

Bernstein Calls Selloff An Overreaction

Bernstein adjusted its price target down to $428 from $452 but kept an ‘Outperform’ rating. The firm emphasized that Q4 results were solid and the conservative FY27 guidance does not undermine its positive view on consumption growth. 

Bernstein sees the stock’s 25% drop as an overreaction, suggesting that investors may find a buying opportunity in the current selloff.

Wedbush analyst Daniel Ives also cut the price target to $380 from $440 while maintaining an ‘Outperform’ stance. The firm noted that strong quarterly results were overshadowed by a cautious outlook. However, Wedbush remains optimistic about MongoDB’s ability to cash in Atlas to drive future growth.

MDB stock traded over 1% lower over the last 12 months. 

Also See: Apple Increases Prices Of Its New MacBook Air And Pro Models – Everything To Know About Its Latest Lineup

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