MongoDB Gains Momentum As AI Use And Cloud Platform Growth Accelerate: Analyst

Wedbush analyst Daniel Ives maintained MongoDB MDB with an Outperform and raised the price forecast from $300 to $400.

Ives cited the company's successful push into enterprise markets and renewed momentum in its cloud business. The analyst added MongoDB to Wedbush's Best Ideas List, and projected that the company is entering its "next stride" as AI use cases expand significantly in the coming years.

Also Read: MongoDB Expands AI Capabilities With Voyage AI Deal, Targets Faster Insights From Unstructured Data

He pointed to MongoDB's strong rebound quarter, with Atlas consumption metrics re-accelerating and customer growth reaching record levels. Ives said the Atlas platform is increasingly attracting enterprise AI customers, supported by the company's product innovation engine and platform-based approach that enables organizations to build and scale custom AI applications. The analyst noted that as more companies face challenges in deploying AI at enterprise scale due to flexibility, scalability and performance limitations, MongoDB is capturing incremental share by offering solutions that address these hurdles.

Atlas has already grown into a $2 billion revenue business, but Ives believes it has "barely scratched the surface" of its potential. The analyst noted that most current growth still comes from MongoDB's core database operations, which remain strong across mid-market and enterprise organizations. Over time, Ives expects Atlas to deliver increasing value as AI adoption accelerates and more enterprises standardize on MongoDB for AI-native applications.

He also highlighted the Voyage acquisition, which contributed about 300 of the 2,800 new customers in the most recent quarter. The analyst said this move strengthens MongoDB's AI capabilities by embedding models directly into its platform for mission-critical workflows, creating significant cross-sell opportunities across the company's existing customer base.

Despite MongoDB's strong results, Ives emphasized that the company holds growth potential as it still holds just 2% of a $100 billion+ total addressable market (TAM).

Ives projected third-quarter revenue of $589.6 million and EPS of $0.78.

Price Action: MDB stock is up 2.46% at $338.11 at last check on Monday.

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