MongoDB announced strong fourth-quarter results on March 5, 2025, with revenue and earnings both significantly improved year-over-year. Despite these positive announcements, MongoDB shares declined by 1.55% over the past week, aligning with a broader market sell-off caused by tariff concerns which led to a 1.9% decline in overall market performance. The company's guidance, which was below analysts' expectations, may have influenced investor sentiment. The market remains wary of U.S. tariff policies, potentially affecting tech stocks like MongoDB. The market reaction overshadowed the company's authorized USD 200 million share buyback program intended to enhance shareholder value. While MongoDB's solid Q4 performance was evident, its softer outlook and the ongoing uncertainty in the tech sector due to external economic pressures likely contributed to the negative price movement observed last week.

Click to explore a detailed breakdown of our findings on MongoDB.

Over the past five years, MongoDB's shares delivered a total return of 113.27%. Although currently unprofitable, the company has demonstrated significant revenue growth, with its revenue soaring from US$1.68 billion to US$2.00 billion, as reflected in its recent earnings reports. The launch of MongoDB 8.0 in late 2024 improved performance and scaling capabilities, enriching its product offering. Furthermore, collaborations with companies like Lombard Odier and Patronus AI in early 2025 have fortified MongoDB's position in modernizing banking technology and enhancing AI capabilities. These efforts showcase MongoDB’s commitment to innovation despite external challenges.

The announcement of a US$200 million share buyback program also underscores its focus on enhancing shareholder value. However, insider selling and a class action lawsuit related to guidance changes have posed challenges. Despite underperforming the US IT industry, MongoDB's substantial revenue growth and active engagement in strategic partnerships have contributed to its long-term success.

• Learn how MongoDB's intrinsic value compares to its market price with our detailed valuation report.
• Uncover the uncertainties that could impact MongoDB's future growth—read our risk evaluation here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGM:MDB.

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