Just yesterday, MongoDB (NASDAQ:MDB) turned in its earnings report to wide acclaim. The news was solid enough as it was, and it carried on into Friday afternoon’s trading as well. MongoDB posted a new double-digit hike as it closed down the week’s trading. It also provided a halo effect to other stocks in the sector.
MongoDB turned in impressive numbers, thanks mainly to its growth in managed databases and the increased customer interest it’s drawn therein. MongoDB’s growth was such that several other stocks in the sector got a boost therein, including Snowflake (NYSE:SNOW), Datadog (NASDAQ:DDOG), and Cloudflare (NYSE:NET). Each added to its position in Friday afternoon trading, but MongoDB was the clear winner by a margin of better than five to one at one point in trading.
MongoDB’s jump was sufficient to catch analyst attention, too; Goldman Sachs, via analyst Kash Rangan, reiterated the Buy rating currently on MongoDB and hiked the price target from its original $280 to its new $420. Rangan noted that new tools like GitHub Copilot would draw interest and spur further use. That was a point asserted by MongoDB CEO Dev Ittycheria, who noted that innovation is still a major priority in MongoDB’s operations. That’s particularly true as more organizations look at their technology investments and winnow down what they don’t truly need.
MongoDB was the definite winner, but not in some ways. As it gained heavily, it also gave itself a new downside risk of 8.36%, with its average price target of $344.43. However, Snowflake—the second-highest gainer—currently has the only upside potential of these four stocks. Its average price target of $178.50 gives it 1.52% upside potential.
