MongoDB stock falls 14% despite 30% revenue growth

MongoDB just posted its strongest growth in years, yet its stock sank anyway.

The company reported a fiscal second-quarter beat-and-raise on Thursday, with revenue up 30% to $772 million and adjusted earnings per share jumping 90% to $1.90. Atlas, its cloud database service, grew 29% and now makes up 73% of sales. MongoDB also added 2,900 new customers, bringing the total to 70,600, and saw its top-tier customers—those spending over $100,000 annually—rise 17% to nearly 3,000. The numbers look like a clear win, especially as 30% of its revenue now comes from customers using AI tools on its platform.

Still, investors weren’t convinced. The stock fell about 14% in after-hours trading despite the strong results, reflecting doubts about MongoDB’s premium valuation and its cautious outlook for the current quarter. MongoDB forecast revenue of $759 million for Q3, slightly below what Wall Street expected, sparking concerns that growth may be slowing. The broader market skepticism toward software stocks—fueled by the idea that AI could make traditional enterprise software obsolete—also weighed on the shares.

The disconnect highlights a bigger debate. While MongoDB’s financials prove it’s still expanding rapidly, its valuation and guidance leave investors questioning whether the stock is worth its high price. The company’s shift toward AI-driven workloads on Atlas shows it’s adapting, but until growth accelerates beyond expectations, the market isn’t ready to reward it with higher shares. For now, MongoDB’s strong execution isn’t enough to overcome investor caution.