MongoDB Inc (NASDAQ:MDB) shares are surging in Wednesday’s after-hours session, in sympathy with Snowflake Inc (NYSE:SNOW), after the company posted strong results for the first quarter.
- MongoDB stock is showing exceptional strength. What’s fueling MDB momentum?
What Happened With SNOW?
Snowflake beat estimates on the top and bottom lines in the first quarter, posting revenue of $1.39 billion versus estimates of $1.32 billion, and adjusted earnings per share of 39 cents versus estimates of 32 cents.
The AI data cloud company also guided for second-quarter product revenue growth of 30%, citing AI as a “powerful tailwind.”
“We are seeing strong momentum from both AI-driven acceleration of our core platform and growing adoption of our first-party AI products,” said Sridhar Ramaswamy, CEO of Snowflake.
Why It Matters For MDB
MongoDB and Snowflake both operate as data platform companies and often move together. Investors appear to be anticipating upbeat earnings from MongoDB following Snowflake’s strong earnings results. Snowflake said that the first quarter marked a “clear inflection point” for AI-related demand.
MongoDB is due to report its own first-quarter results after the market close on Thursday. Analysts are currently anticipating revenue of $663.47 million and earnings of 89 cents per share, per Benzinga data.
Analysts Weigh In
Canaccord Genuity analyst Kingsley Crane maintained MongoDB with a Buy rating and raised the price target from $375 to $400 on Wednesday, a day ahead of the company’s first-quarter report.
Baird and Cantor Fitzgerald have also raised price targets on MongoDB in recent weeks, signaling analyst confidence heading into the print.
MDB Shares Surge Late Wednesday
MDB Price Action: MongoDB shares were up 10.64% in after-hours Wednesday, trading at $325.80 at the time of publication, according to Benzinga Pro.
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