MongoDB, Inc. (NASDAQ:MDB) shareholders might be concerned after seeing the share price drop 24% in the last quarter. But looking back over the last year, the returns have actually been rather pleasing! Looking at the full year, the company has easily bested an index fund by gaining 58%.
MongoDB isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year MongoDB saw its revenue grow by 67%. That’s stonking growth even when compared to other loss-making stocks. While the share price gain of 58% over twelve months is pretty tasty, you might argue it doesn’t fully reflect the strong revenue growth. If that’s the case, now might be the time to take a close look at MongoDB. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see how revenue has changed over time in the image below.
MongoDB is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
It’s nice to see that MongoDB shareholders have gained 58% over the last year. Unfortunately the share price is down 24% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. If you would like to research MongoDB in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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