Why MongoDB Stock Soared Today
What happened
Shares of MongoDB (NASDAQ: MDB) surged by 15% on Wednesday after the cloud database company expanded its strategic collaboration agreement with Amazon.com (NASDAQ: AMZN).
So what
Over the next six years, MongoDB and Amazon Web Services (AWS) will work together to help more businesses migrate their database operations to the cloud. MongoDB and AWS will integrate some of their sales initiatives, developer training offerings, and technological processes.
Particular focus will be placed on MongoDB's popular Atlas cloud data platform. In the fourth quarter, the service's customer base grew by more than 35% year over year to over 31,500, while its revenue rocketed upward by 85%.
MongoDB struck a lucrative deal with Amazon. Image source: Getty Images.
MongoDB said that making its software easily available on the AWS marketplace will strengthen companies' ability to operate Atlas across the world while maintaining a high degree of security, reliability, and scalability.
Now what
MongoDB has already been expanding at a torrid clip. Its total revenue rose 48% to $873.8 million in its fiscal 2022, which ended Jan. 31, and management expects the company's sales to grow by an additional 33% in its fiscal 2023.
"Our success is being driven by the fact that our modern application data platform dramatically reduces friction in the development process to make it incredibly easy for developers to build compelling applications," CEO Dev Ittycheria said in MongoDB's fiscal fourth-quarter earnings release on March 8.
And Ittycheria sees a massive addressable market still ahead.
"We are confident in our ability to capitalize on our $70 billion market opportunity and deliver strong growth for the foreseeable future," he said.
10 stocks we like better than MongoDB
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and MongoDB wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 3, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Joe Tenebruso has the following options: long January 2024 $2,000 calls on Amazon. The Motley Fool owns and recommends Amazon and MongoDB. The Motley Fool has a disclosure policy.
