We recently published a list of Jim Cramer’s Top Picks: 10 Stocks to Buy and Sell. Since MongoDB, Inc. (NASDAQ:MDB) ranks 4th on the list, it deserves a deeper look.
Commenting on the aggressive rate cut by the Federal Reserve, Jim Cramer said in a latest program on CNBC that the “double” rate cut was needed for the economy and it would help the housing market, industrials and companies catering to the “less well-off” households.
“There really are two economies in this country. There is the one that needs lower interest rates because business is slowing and it’s harder to find a job and then there is one that says we don’t really care about where the stinking rates are. That’s who we can get a double rate cut today and still going lower.”
Cramer said he is currently in Silicon Valley and after talking to many companies, he feels tech companies do not care about interest rates since they are selling to businesses. Cramer said these technology companies are focused on innovation.
For this article, we picked 10 stocks Jim Cramer recently talked about during his latest programs on CNBC. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Mongodb Inc (NASDAQ:MDB)
Number of Hedge Fund Investors: 54
When asked about Mongodb Inc (NASDAQ:MDB), here is what Cramer said during a latest program:
“That was an enterprise software company that put up terrific numbers that is not getting credit.”
Cramer said that’s because people “hate” enterprise software. However, he thinks MongoDB is at the “right place.”
Wedbush analyst Dan Ives said a couple of months back that AI stocks including Mongodb Inc (NASDAQ:MDB) are “way oversold.”
MongoDB Inc (NASDAQ:MDB) shares plunged after Q1 results but rebounded as Q2 numbers eased investors’ concerns.
Mongodb Inc (NASDAQ:MDB) is a decent AI play amid its database AI applications that can handle complex data structures efficiently, eliminating the need for multiple database systems and simplifying processes.
Mongodb Inc (NASDAQ:MDB) has launched the MongoDB AI Applications Program. This initiative offers resources like reference architectures, a full tech stack, professional services, and unified support to help customers implement AI using its platform. MongoDB is also gaining traction in search. Delivery Hero is using MongoDB Atlas Vector Search, and a major gaming company has shifted its content moderation platform to Atlas and Atlas Search. The gaming company uses Atlas Search Nodes for workload isolation and high performance. Additionally, Mongodb Inc (NASDAQ:MDB) made Stream Processing generally available in May, drawing significant interest. This momentum supports MongoDB’s belief that its platform can handle a wide range of use cases.
MongoDB reported $478 million in revenue for the second quarter, reflecting a 13% year-over-year increase. For the third quarter, Mongodb Inc (NASDAQ:MDB) forecasts revenue between $493 million and $497 million, a 14% year-over-year increase. The company expects full-year revenue to reach between $1.92 billion and $1.93 billion, also representing 14% growth.
Alger Mid Cap Growth Fund stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its first quarter 2024 investor letter:
“MongoDB, Inc. (NASDAQ:MDB) is a scalable open-source database platform that allows developers to store, manage, and process structured. semi-structured and unstructured data generated by or feeding into the applications. Atlas, their cloud database-as-a-service platform, supports a comprehensive suite of core workloads, covering database, search, analytics and charts, and device sync. We believe the company is benefiting from a secular increase in demand for high-volume data storage driven by organizations needing to be able to store large amounts of data while still performing rapidly. During the quarter, the company reported strong fiscal fourth quarter results where revenues and operating profits beat analyst estimates, driven by strong growth in Atlas. However, shares fell after management issued forward revenue guidance that was below consensus estimates due to one-time items related to unused credits and multi-year upfront enterprise agreements. Nevertheless, we continue to believe the company is well positioned to become a best-in-class database management platform given its exposure to the secular increase in demand for high volume data storage solutions.”
Overall, MongoDB, Inc. (NASDAQ:MDB) ranks 4th on Insider Monkey’s list titled Jim Cramer’s Top Picks: 10 Stocks to Buy and Sell. While we acknowledge the potential of MongoDB, Inc. (NASDAQ:MDB), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MDB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
