MongoDB Surges 59% in Three Months: Is the Stock Still Worth Buying?

Core Insights - MongoDB (MDB) has seen a significant stock price increase of 58.8% over the past three months, outperforming the Zacks Internet-Software industry's decline of 12.5% and the Zacks Computer and Technology sector's return of 10.9% [1] - The stock's performance is attributed to stronger adoption of the Atlas platform and increasing demand for AI-driven applications [1] Performance Overview - MongoDB's Atlas revenues grew by 29% year over year to $438.97 million in Q2 of fiscal 2026, accounting for 74% of total revenues [11] - The Zacks Consensus Estimate for Q3 fiscal 2026 Atlas revenues is projected at $455.82 million, reflecting a year-over-year increase of 25.7% [11] - The number of Atlas customers is expected to reach 59,906, marking a 17.2% year-over-year growth [11] Valuation Metrics - MongoDB trades at a forward 12-month price-to-sales (P/S) ratio of 10.3X, significantly higher than the sub-industry average of 4.64X, indicating strong expectations for continued growth in AI-ready data infrastructure [4] Strategic Positioning - The Atlas platform serves as a unified operational data layer, enabling enterprises to manage various workloads without the need for multiple services [7] - MongoDB's JSON-native design offers advantages over traditional systems like PostgreSQL, particularly for AI applications requiring flexible schemas and fast data retrieval [12] Customer and Partner Ecosystem - MongoDB added over 5,000 customers in the first half of fiscal 2026, with notable growth in large enterprise accounts and self-serve customers [16] - The Zacks Consensus Estimate for total customers in Q3 is 62,000, up 17.9% year over year, with high-value accounts (customers over $100K) expected to reach 2,699, a 16.3% increase [17] Conclusion - MongoDB's growth is driven by structural tailwinds, including increased Atlas adoption, deeper integration into AI infrastructure, and a broadening partner ecosystem across major cloud platforms [19] - The company is well-positioned to benefit from ongoing cloud modernization and the rise of AI-powered applications, making it a compelling investment option despite its premium valuation [19][20]