MongoDB Trades at a P/S of 7.08X: Should You Still Buy MDB Stock?

Core Insights - MongoDB (MDB) shares are currently trading at a premium with a Value Score of F, and a forward 12 months Price/Sales ratio of 7.08X, which is above the Internet – Software industry's average of 5.91X [1][9] - The company's expanding enterprise clientele and momentum in AI are seen as justifications for this premium valuation, supported by operational efficiency and an innovative product portfolio [2] Performance Overview - MongoDB shares have increased by 8.7% in the past month, outperforming the Zacks Computer and Technology sector's 8.1% and the Zacks Internet – Software industry's 7% [5] - The fiscal first-quarter performance showed a year-over-year revenue growth of 22% to $549 million, with Atlas revenue up 26% and operating income more than doubling to $87 million [12] Customer Growth and Product Innovation - The company achieved record customer additions in the first quarter of fiscal 2026, with significant enterprise wins such as CSX and Zepto, indicating strong adoption across various industries [10] - MongoDB launched version 8.0, with adoption rates doubling compared to the previous major version, and enhanced its AI capabilities with Voyage 3.5, which improved embedding accuracy and reduced storage costs by over 80% [11][14] Financial Guidance - For fiscal 2026, MongoDB expects revenues between $2.25 billion and $2.29 billion, reflecting a $10 million increase from prior guidance, with non-GAAP earnings per share projected between $2.94 and $3.12 [12] - The Zacks Consensus Estimate for fiscal 2026 revenues is $2.28 billion, indicating a year-over-year growth of 13.48%, while the consensus for earnings is $3.03 per share, revised upward by 18.36% over the past 30 days [13] Strategic Partnerships - MongoDB has expanded its partner base, recently announcing backup integration with Rubrik and Cohesity, enhancing data protection for enterprise customers in hybrid cloud environments [16] Market Position and Outlook - Despite the premium valuation, upward estimate revisions and improving profitability provide support for the stock, indicating market confidence in MongoDB's innovation-led growth strategy [17] - The stock is currently trading above the 50-day moving average, suggesting a bullish trend [18]