MongoDB Stock Drops After Analyst Downgrade Citing Slow AI Growth
The firm also points out that the cloud database market remains highly fragmented, with no clear leaders yet emerging
Shares of MongoDB fell 1.5% to $186.09 after Loop Capital downgraded the stock from "buy" to "hold" and slashed its price target from $350 to $190.
Loop Capital expects Atlas’ growth to keep slowing until MongoDB shows real progress in hitting its market goals—especially in expanding among large enterprise clients.
The firm also points out that the cloud database market remains highly fragmented, with no clear leaders yet emerging.
The stock had been recovering since hitting a two-year low of $140.78 in April but has struggled to rise past the $200 mark. MongoDB is down 20% in 2024 so far.
Despite the dip, most analysts remain optimistic.
Options traders have reportedly shown strong interest, betting on continued volatility in the stock.
