Shares of MongoDB soared 31% following strong growth in its Atlas cloud service, which is increasingly utilized for AI applications. This surge added over $5.2 billion to its market cap, now at $17.51 billion. The rise in generative AI apps drives demand for efficient cloud databases like Atlas, which excel in handling unstructured data. As enterprises focus on AI features, the use of AI-ready databases is surging, leading to faster revenue growth for MongoDB. Analyst Luke Yang notes heightened momentum among both startups and enterprises due to strategic resource reallocations and product improvements in AI. MongoDB has raised its annual profit forecast to between $3.64 and $3.73 per share, with anticipated revenue between $2.34 billion and $2.36 billion, surpassing Wall Street estimates. More than 15 analysts upgraded price targets, favoring shares rated “Buy,” with a median target of $325. MongoDB’s shares currently trade at 58.6 times profit estimates, solidifying its market position.
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