12 Best Software Stocks to Buy According to Analysts

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8. MongoDB, Inc. (NASDAQ:MDB)

Stock Price: $242.91

Number of Hedge Fund Holders: 49

Analyst Upside Potential: 64.67%

MongoDB, Inc. (NASDAQ:MDB) is a software company that provides a developer platform that helps developers manage and work with data effectively. In addition to an integrated suite of databases and services for various application needs, the company also provides MongoDB Atlas, a cloud-based service that allows users to store and manage data across multiple cloud providers like AWS, Google Cloud, and Azure.

The company is focusing on expanding its enterprise customer base, recognizing this segment offers the strongest returns. Management plans to enhance its strategic account program and educate developers in large enterprises to maximize the use of MongoDB’s capabilities. MongoDB, Inc. (NASDAQ:MDB) is also working on modernizing its legacy applications using AI technologies, which can significantly reduce costs and risks associated with migration.

During the fiscal third quarter of 2024, the company generated $529 million in revenue, marking a 22% increase compared to the same quarter last year and exceeding management’s expectations. Its MongoDB Atlas cloud service database was a major contributor accounting for 68% of the total revenue and grew 26% year-over-year. It is one of the best software stocks to buy according to analysts.

Fidelity Growth Strategies Fund stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its Q2 2024 investor letter:

“An underweight in software & services firm MongoDB, Inc. (NASDAQ:MDB) (-30%) was the next-largest contributor to the fund’s result versus the benchmark. The company’s shares fell sharply in May, after it reported disappointing Q1 results and reduced full-year guidance for its cloud storage platform, MongoDB Atlas.”

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