MongoDB Inc. (NASDAQ:MDB) shares on Monday rocketed more than 15% after reporting its fiscal third-quarter results. The company is announced its most recent quarterly revenue and earnings after markets closed, beating the consensus for analyst expectations.
MongoDB posted FQ3 non-GAAP earnings per share of -$0.11, beating the average for analyst estimates of -$0.38. In addition, its GAAP EPS of -$1.22 outperformed the expectation of -$1.35, while revenue for the quarter increased by 50.5% from the same quarter last year to $226.89, surpassing Street expectations by $21.71 million.
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Although MongoDB shares have fallen by more than 26% since hitting a new all-time high of about $590 per share on the 16th of November, the stock is still up more than 23% this year.
Is it too risky to buy MDB stock?
From an investment perspective, MongoDB shares traded at a steep P/S ratio of 45.39 before the after-hours spike, making the stock too expensive for value investors.
On the other hand, analysts expect its EPS to decline by 44.20% this year before bouncing back 33.30% next year.
Therefore, long-term growth investors could also opt for alternatives in the market.
Technically, MongoDB shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has plummeted closer to the oversold conditions of the 14-day RSI.
Therefore, investors could target technical rebounds at around $470.57, or higher at $516.20, while $385.47 and $353.81 are crucial support levels.
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