3. MongoDB, Inc. (NASDAQ:MDB)
Average Upside Potential: ~108.1%
Number of Hedge Fund Holders: 70
MongoDB, Inc. (NASDAQ:MDB) is a software company that is engaged in developing and providing MongoDB, a popular NoSQL database that has been designed for flexibility, scalability, and performance. Citi has maintained a “Buy” rating on the company’s shares with a price target of $430. As per the firm, it posted healthy quarterly results, showcasing improvements in Atlas consumption, despite the quarter being overshadowed by a more conservative fiscal 2026 guidance. MongoDB, Inc. (NASDAQ:MDB) delivered a healthy end to fiscal 2025, with 24% Atlas revenue growth and significant margin expansion. In fiscal year 2026, the company expects to see stable consumption growth in Atlas, its main growth driver.
MongoDB, Inc. (NASDAQ:MDB) has acquired Voyage AI, which is a pioneer in state-of-the-art embedding and reranking models powering next-gen AI applications. The integration of Voyage AI’s technology with the company is expected to enable organizations to easily build trustworthy, AI-powered applications by providing highly accurate and relevant information retrieval deeply integrated with operational data. MongoDB, Inc. (NASDAQ:MDB) highlighted that Voyage AI’s advanced embedding and reranking models allow applications to extract meaning from highly specialized as well as domain-specific text and unstructured data—spanning across legal and financial documents to images, code, and enterprise knowledge bases.
Montaka Global Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“While the bulk of MongoDB, Inc.’s (NASDAQ:MDB) portfolio exposures continued to remain relatively stable over the December quarter, we did undertake some modest hands-on portfolio management in the tail-end of the portfolio.
We exited three of Montaka’s smallest portfolio names. While we see long-term upside in all of these names, we see more upside elsewhere. Hence, we reallocated these proceeds to (i) scale up Montaka’s investment in Alphabet on increased probabilities that its advantages in Google Search are strengthening (not to mention the group’s numerous growth options increasing in probability – from YouTube, to Waymo, and even quantum computing); and (ii) to establish an initial ‘outlier’ position in database software provider, MongoDB (MDB).
We view outliers as ‘option-like’ in that their upside potential is very large, but the probability is far less certain. On this basis, we deliberately restrict Montaka’s aggregate portfolio allocation to outliers – which currently stands at less than 7%. The remaining 93% of Montaka’s portfolio is allocated to businesses we classify as ‘compounders’.
As a database provider for large production-ready applications, MDB has suffered of late because software developers have overwhelmingly focused on small, experimental AI-based ‘proof of concepts’ rather than production deployments. We expect this cycle to turn in 2025 and beyond, and it’s possible (though not certain) that demand for MDB accelerates materially…” (Click here to read the full text)
