10 Worst Cloud Stocks To Buy According to Short Sellers

6. MongoDB, Inc. (NASDAQ:MDB)

Short % of float: 5.41%

Number of Hedge Fund Holders: 54

MongoDB, known for its flexible NoSQL database management system, enables developers to store data in a non-relational format, providing advantages such as flexible schemas and horizontal scaling. Its popularity surged with the rise of cloud computing, making NoSQL more accessible. MongoDB has established itself as a leading platform for cloud application development, attracting a community of over 7 million developers.

In Q2, MongoDB reported a 13% year-over-year revenue increase, reaching $478 million, primarily driven by the success of its Atlas and Enterprise Advanced (EA) products. The company also gained over 1,500 new customers during the quarter, bringing its total customer base to more than 50,700.

Loop Capital expressed continued confidence in MongoDB, Inc. (NASDAQ:MDB) by maintaining a Buy rating and a price target of $315. The firm noted the stabilization of MongoDB’s Cloud Atlas business and a modest uptick in consumption trends over the past quarter, while noting that the operational challenges from the first quarter have largely been resolved, resulting in a positive outlook for the company’s cloud segment. The report indicated that Cloud Atlas is expected to see Street estimates increase by over 20% for both fiscal years 2025 and 2026.

ClearBridge All Cap Growth Strategy stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its first quarter 2024 investor letter:

“During the first quarter, we initiated a new position in MongoDB, Inc. (NASDAQ:MDB), in the IT sector. The company offers a leading modern database platform that handles all data types and is geared toward modern Internet applications, which constitute the bulk of new workloads. Database is one of the largest and fastest-growing software segments, and we believe it is early innings in the company’s ability to penetrate this market. MongoDB is actively expanding its potential market by adding ancillary capabilities like vector search for AI applications, streaming and real-time data analytics. The company reached non-GAAP profitability in 2022, and we see significant room for improved margins as revenue scales.”