MongoDB's (NASDAQ:MDB) growing losses don't faze investors as the stock increases 6.0% this past week

By
Simply Wall St
Published
September 16, 2021
NasdaqGM:MDB
Source: Shutterstock

Investing can be hard but the potential fo an individual stock to pay off big time inspires us. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. One bright shining star stock has been MongoDB, Inc. (NASDAQ:MDB), which is 513% higher than three years ago. It's also up 38% in about a month. We note that MongoDB reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report. It really delights us to see such great share price performance for investors.

Since it's been a strong week for MongoDB shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for MongoDB

Because MongoDB made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

MongoDB's revenue trended up 38% each year over three years. That's well above most pre-profit companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 83% per year, over the same period. It's always tempting to take profits after a share price gain like that, but high-growth companies like MongoDB can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGM:MDB Earnings and Revenue Growth September 16th 2021

MongoDB is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.

A Different Perspective

Pleasingly, MongoDB's total shareholder return last year was 141%. That's better than the annualized TSR of 83% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand MongoDB better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for MongoDB you should know about.

But note: MongoDB may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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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.
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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.