Shares of global general-purpose database platform provider MongoDB, Inc. (MDB) are up 43% over the past 12 months. Recently MDB delivered a 50% growth in the third-quarter top-line.
Notably, MDB witnessed 84% growth in Atlas, its database managing cloud service. MDB’s total number of customers now stands at over 31,000. With these positives in mind, let’s have a look at the changes in MDB’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, MDB’s top two risk categories are Finance & Corporate and Tech & Innovation, contributing 35% and 23% respectively to the total 66 risks identified. Compared to a sector average of 16%, MDB’s Tech & Innovation risk factor is at 23%.
In its recent quarterly report, the company has added one key risk factor under the Legal & Regulatory risk category.
MDB noted that data privacy has become a key issue in a number of jurisdictions where it offers its software and services. MDB’s software and services can be used to store significant amounts of personal data. (See Insiders’ Hot Stocks on TipRanks)
MDB is subject to strict and often-changing rules and regulations associated with data privacy and information security. Any actual or perceived failure to comply with these regulations could mean regulatory investigations, fines, litigation, or disruption to MDB’s operations.
Furthermore, such an event may also cause damage to reputation and an adverse impact on the company. Privacy concerns could also limit the market adoption of MDB’s software, particularly in certain industries and foreign jurisdictions.
Wall Street’s Take
On December 7, Morgan Stanley analyst Sanjit Singh reiterated a Buy rating on the stock alongside a price target of $525, which implies 9.71% potential upside. The analyst views re-acceleration in MDB’s growth favorably.
Consensus on the Street is a Strong Buy based on 11 Buys and 3 Holds for the stock. The average MongoDB price target of $574.42 implies a potential upside of 20%.
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