After earnings MDB has been on a tear. Up 13.95% $39.05) yes6.44%terday and another $20.56 so far today (6.44%). The only information I can find was a Seeking Alpha article speculating that MDB would be a good fit for MSFT. I know many have left this stock, but any additional information would be appreciated.
I’m not aware of any news or rumors. I’d be surprised if MongoDB get acquired.
My best guess is that the stock price was held down a little bit this year expecting more of a headwind from COVID. Despite the pandemic, the company has managed to continue to grow revenue pretty nicely, grown customer count strongly this year and are now expanding net retention rate, so the optimism for 2021 (and future years) may be rising.
I’m not complaining one bit by the stock movement the past few days since MDB is still one of my bigger holdings, but I definitely wasn’t expecting this kind of reaction from the market.
I have no plans to sell any MDB, although if someone is considering a new buy, there could be a dip coming after this great run. It’s definitely not what I would consider cheap right now. Granted, I do plan to exercise some calls before they expire next month (they are up more than 1,000% and in a taxable account), essentially putting a some more money into Mongo, since I am optimistic about the multi-year future of the company and expect to be an MDB shareholder for years to come if they stay on track.
I had cut my Mongo position down to just a 3-4% holding awhile ago (used to be closer to 10%), but as you point out, with it’s over 20% jump this week, it’s now back over 5% again for me. Besides the beat and raise quarter, and good guidance, there were a lot of analyst price target raises since the earnings release, I would think those contributed to the spike we’re seeing.
This looks like the article suggesting that Microsoft could buy them.
Type any email address into the box and it gives you free access to the full article.
It’s all speculation. Not based on any evidence or actual rumor. They basically suggest it could make sense for Microsoft to buy Mongo or New Relic, CSCO to buy Smartsheets, and Oracle to buy Dropbox.
Perhaps this fueled a little bit of the momentum for MDB today, who knows.
Personally, I wouldn’t want Mongo to get acquired anytime soon and I don’t know why management or the Board would consider an offer unless the premium was huge.