MongoDB Plunges 25% After Q1 Profit Forecast Miss, Price Targets Cut
MongoDB shares plunged 25% after first-quarter profit guidance missed estimates, despite reporting adjusted Q4 earnings and revenue beats. At least 18 analysts cut price targets—lowest to $275 from $415—with the stock hitting its lowest level since August and RSI in oversold territory.
1. Q1 Profit Guidance Miss
MongoDB projected first-quarter profit below consensus, triggering a 25% share price drop. This guidance whiff overshadowed an adjusted fourth-quarter earnings and revenue beat, rattling investor confidence.
2. Analyst Price Target Cuts
Eighteen analysts reduced their price targets in response to the guidance miss, with the lowest revised target falling to $275 from $415. Despite the cuts, 30 of 39 brokerages still rate the stock a strong buy.
3. Technical Indicators
The stock is trading at its lowest level since a 38.3% post-earnings bull gap in August and has fallen below its year-over-year breakeven point. A 14-day RSI reading of 26 places it deep in oversold territory.
4. Options Market Activity
The 50-day put/call volume ratio stands at 1.19, higher than 90% of readings over the past year, reflecting bearish bets. In contrast, over 18,000 calls traded this morning—11 times the average—with March 330 and weekly 3/6 300-strike contracts most active.