MDB Stock: Why Are Investors So Bullish on MongoDB?

As many software-as-a-service companies rush to capitalize on the artificial intelligence (AI) boom, MongoDB [MBD] has launched an AI-powered platform and extended its search capabilities to a wider range of clients. 

Founded in 2007, the New York City-based company provides document-oriented database platform services to over 59,900 customers, including large firms such as Novo Nordisk [NVO], Toyota [TM] and Wells Fargo [WFC]. 

Its products include MongoDB Atlas, a multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server; and a free-to-download version known as Community Server. The company also offers consultation and training services. 

With MDB stock riding high on solid Q2 2026 results, investors are looking to see if there is still any upside left to capture. In this article, we’ll explore the most recent updates for MongoDB, plus the bull and bear cases for MDB stock.

Platform Power

Despite its relatively small size in the highly competitive database and cloud spaces, over the past decade MongoDB has become an established name in providing NoSQL database services, which help firms to process large volumes of unstructured or semi-structured data. 

In recent months, the company has focused on expanding its offerings to help hyperscaler clients like Alphabet [GOOGL] or Microsoft [MSFT] develop and deploy AI applications. In February, MongoDB acquired startup Voyager AI for $220m in a cash-and-stock deal. MongoDB CEO Dev Ittycheria said that the acquisition was aimed at helping AI models locate the right information within databases, “to help customers reduce their risk of hallucination, so that they can really trust the output of these applications.”

The acquisition enabled MongoDB to debut a number of new AI products, including agentic workflow capabilities, at the Ai4 conference in Las Vegas in August, with Senior Vice President of Products Andrew Davidson proclaiming that “databases are more central than ever to the technology stack in the age of AI”.

September 16 marked the launch of MongoDB AMP, an AI-powered platform intended to help clients quickly modernize and scale legacy applications. The platform’s AI tools reportedly speed up tasks such as code transformation as much as 10 times, with general modernization projects implemented 2–3 times faster.

The next day, it also announced that its search and vector search capabilities would be extended to MongoDB Community and Enterprise Server customers, features previously exclusive to its Atlas cloud platform. The company has a long history as a proponent of open-source distribution, with its original platform first released as open-source in 2009, although it has shifted to focus on its enterprise solutions in recent years, with the majority of its revenue coming from subscriptions. 

Indeed, enterprise solutions are the backbone of MongoDB’s impressive financial growth in recent quarters. In its Q2 2026 earnings report, released on August 26, the company recorded 24% revenue growth to $591.4m, supported by 29% growth in revenue from its Atlas platform. Earnings also saw a nearly 50% surprise on EPS, which came in at $1.00, versus Wall Street expectations of $0.66. The company also added 5,000 new customers in the year to date, a record amount, and issued elevated Q3 revenue guidance in the range of $587m–592m. 

MDB’s Bullish Rally

Zooming out, MDB stock has performed solidly since the company’s public debut in 2017, rising from $24 per share at IPO to a record high of $585.87 in November 2021. 

Compared to pandemic-era highs, and a peak in late 2023, MDB stock has performed in line with the market so far in 2025, with the typical tariff-fueled trough in April followed by a sharp rally. More recently, MDB stock rose 30% in a single trading session on August 27, with investors bullish on the firm’s strong Q2 earnings, outlook and the continuing potential of its go-to-market strategy. 

The stock has traded relatively flat since then, with the announcements of MongoDB AMP and extended search capabilities failing to move the needle. Regardless, the stock is up 38.99% in the year to date and up 16.21% in the past 12 months. 

MDB vs ORCL vs SNOW

MongoDB competes with several diversified, heavyweight tech firms in the database space such as Amazon’s [AMZN] AWS. However, its specialized, user-friendly product offerings have allowed it to maintain a competitive edge, and it also counts numerous cloud hyperscalers among its clients. For comparison, let’s take a look at how MongoDB measures up to cloud giant Oracle [ORCL] and fellow Wall Street darling Snowflake [SNOW].

All three companies have made AI a central part of their growth outlook. In terms of scale, however, Oracle takes the cake, with several major contracts announced in early September showcasing its cloud computing might, including a five-year, $300bn deal with OpenAI. More recently, Oracle was tapped to oversee social media platform TikTok’s US algorithm. In its Q1 2026 results, the company announced a 12% rise in quarterly revenue, driven by cloud gains, and a 359% rise in total performance obligations, representing unrealized revenue from ongoing projects. Bullish investor sentiment has pushed its market cap close to the $1trn mark. 

While Snowflake also outstrips MongoDB in terms of market cap, its success in cloud data warehousing and analytics mirrors MongoDB’s gains in operational database building. In Q2 2026 Snowflake reported a 32% year-over-year rise in product revenue, and a 33% increase in remaining performance obligations. The company also provided guidance of $1.125bn–1.13bn for Q3, with SNOW stock rising up to 17% in the wake of earnings. 

Here’s how the three companies compare in terms of fundamentals.

Source: Yahoo Finance

The Investment Case for MongoDB

The Bull Case for MDB Stock

Several Wall street firms have raised their targets on MDB stock since the company’s most recent user conference in New York City, citing sustained growth prospects driven by a focus on enterprise adoption and AI opportunities. On September 15, Wedbush added the stock to its ‘Best Ideas List’ and raised its price target from $300 to $400, representing an upside of 23.61% from its September 22 close. The firm maintained an ‘outperform’ rating, with analyst Daniel Ives explaining that “enterprise AI deployments through Atlas are still in the early innings”.

At the Goldman Sachs Communacopia and Technology Conference in early September, CEO Ittycheria also pointed to the company’s growth potential. “This is not a winner-take-all market ... If you think the market is roughly about $100bn, we only have 2% share. And if we increase that share just to 5%, we’re a $5bn revenue company. So we have a massive total addressable market (TAM) opportunity, and we don’t need to make any kind of weird pivots or anything to go after that TAM.”

Of the 40 analysts surveyed by Yahoo Finance in September, six gave the stock a ‘strong buy’ rating, while 24 gave the stock a ‘buy’ rating. The average price target of $348.60 represents an upside of 7.73% from the most recent close. 

The Bear Case for MDB Stock

Not everyone is convinced that MDB might be a winner in the near term, however. Analyst Richard Durant downgraded the stock from ‘buy’ to ‘neutral’, arguing that high valuation and macroeconomic pressures could eat into growth. Additionally, he cited the company’s falling services gross margin as a potential cause for concern. 

MongoDB’s specialization could prove to be a weakness, especially if clients decide to forego its services for larger competitors. Of the 40 analysts surveyed by Yahoo Finance in September, nine rated it an ‘underperform’, while one rated it a ‘sell’. The low price target of $240 represents a downside of 25.83% from the most recent close. 

Conclusion

MongoDB’s strong financials, new products and AI-fueled growth opportunities have most investors bullish on the stock. However, high valuation, competition and pressure on its margins could stop the rally in its tracks. Investors will be watching to see if its enterprise growth is keeping pace in Q3 when it reports earnings in November.