Why MongoDB Stock Dropped on Monday

Core Viewpoint - MongoDB's stock has faced a decline following a price target cut by Bernstein analyst Firoz Valliji, who reduced the target by nearly 12% to $357 per share, indicating a challenging outlook for the company heading into Q4 results [1] Group 1: Price Target and Analyst Outlook - Bernstein maintains an outperform rating on MongoDB despite the price target cut, suggesting that the stock may be a buy after the upcoming earnings report [2] - The stock's valuation has "reset," dropping from around $350 in early December to approximately $265 currently, which may present a buying opportunity post-earnings [2] Group 2: Recent Acquisition and Future Plans - MongoDB has acquired Voyage AI, a company specializing in advanced AI models, but details regarding the acquisition cost are not disclosed, making the upcoming earnings report crucial for understanding the implications of this acquisition [3] Group 3: Financial Metrics and Growth Projections - MongoDB is currently valued at $21.9 billion and has reported trailing free cash flow of $148 million, which has been increasing over the past two years, resulting in a price-to-free-cash-flow ratio of 148 [4] - Despite a 50% year-over-year increase in free cash flow over the last nine months, analysts predict significantly slower growth of 18% or less over the next five years, suggesting caution before making investment decisions [5]