MongoDB experienced a notable share price drop of 30% last week, despite announcing positive earnings results and improved year-over-year performance for the fourth quarter and fiscal year ending January 31, 2025. While the company's revenue of $548 million for the fourth quarter exceeded the previous year's $458 million, and net income reached $15.83 million compared to last year's loss, this improvement did not cushion its stock from the week's volatility. MongoDB's announcement of a $200 million share repurchase program and FY 2026 revenue guidance also came amidst a broader market decline. The tech-heavy Nasdaq fell 4% in a day, largely due to investor concerns over new tariffs imposed by the Trump administration, affecting global supply chains and increasing economic uncertainties. In line with this market sentiment, MongoDB's negative price movement aligns with broader market fluctuations, as evidenced by the overall 4.6% market drop over the same week.

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Over the last five years, MongoDB's total shareholder return was 82.20%, indicating a strong performance despite the recent market volatility. This period was marked by several significant factors that likely influenced the company's stock trajectory. In December 2023, MongoDB was added to the NASDAQ-100 Index, which may have increased its visibility and attractiveness to institutional investors. Furthermore, a partnership in June 2024 with Bendigo and Adelaide Bank involved migrating their technology to MongoDB Atlas, showcasing the company's growth in clientele and applications of its services.

In October 2024, the launch of MongoDB 8.0 introduced important performance enhancements, potentially driving increased adoption. Additionally, the integration of MongoDB Atlas with Microsoft Azure AI Foundry in March 2025 highlighted the company's innovation in cloud services, likely bolstering investor confidence. Despite these developments, MongoDB underperformed relative to the broader US IT market and industry over the past year, reflecting challenges within the tech sector and investor concerns about its financial positions, such as significant insider selling noted in recent months.

• Learn how MongoDB's intrinsic value compares to its market price with our detailed valuation report.
• Assess the downside scenarios for MongoDB with our risk evaluation.
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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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