MongoDB was up nearly 220% since the beginning of 2023, as of December 5 closing price, thanks to generative AI world transformation. However, these shares turned out to be partially overbought. A tech company worth $30 billion before the Q3 report far exceeded nominal quarterly expectations by the Wall St expert community, but the stock dropped by nearly 6.5 % on pre-market trading before the next trading session.

Its revenue reached $432.9 million vs analyst estimates of $404 million only, a 7.2% beat and a fresh all-time record, with a 93.5% consensus beat on EPS (equity per share) of $0.96 vs average projections of $0.50. The company's revenue guidance for the current quarter was $431 million at the midpoint, also above analyst estimates of $414.1 million. MongoDB's cash flow was positive at $34.96 million for Q3, compared to a negative number of -$27.3 million in Q2. The company has 46,400 customers, up from 45,000 in Q2, although missing market estimates of 46,870.

So, our first conclusion is that more than 25% extra growth in share price on expectations in November, from $345 to above $440, could play a sick joke with bulls, due to some profit taking despite strong facts. The temporary expansion of losses in market value is likely to be replaced by new waves of growth in the coming weeks.

"MongoDB continued to perform at a high level in the third quarter, as evidenced by 30% revenue growth and better-than-expected profitability. We are pleased by our success in winning new workloads from both new and existing customers across verticals, geographies, and customer segments," said Dev Ittycheria, the company's CEO. Launched in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB helps corporate customers to store large volumes of semi-structured data. The amount of data is accelerating, so that the importance of its storing in efficient formats would rise further, with focus on high-scale processing of images, audio, and video information.

MongoDB's revenue grew from $226.9 million in Q3 2022 to $432.9 million in Q3 2023, which is highly impressive, even though the pace of expansion became slower, when sales increased by $9.15 million only in the last quarter vs a $55.5 million surplus from April to June. Yet, a one-off price fluctuation could not be a real source of concern in the context. Buying these dips looks attractive to invest for mid-term.