Ittycheria said it's been five years since MongoDB unveiled Atlas, its cloud database platform. Today, Atlas is the majority of its business, growing at 73% year over year.
MongoDB software has been downloaded over 180 million times, Ittycheria added, which is an impressive feat given there are only 25 million developers worldwide. People choose MongoDB for its flexibility, scalability and performance, he said.
When asked about profitability, Ittycheria said it would be silly for MongoDB to optimize on profits given the opportunity still in front of the company. They will continue to focus on expanding reach and building market share.
Shares of MongoDB trade for 30 times earnings, while rivals like Snowflake (SNOW) trade for over 70 times earnings, added Cramer.
Let's see how the charts and indicators of MDB look.
In the daily bar chart of MDB, below, we can see that the shares made a strong rally into February, which was then followed by a correction into early May. Prices have rallied sharply from the May low and now trade above the rising 50-day moving average line and the rising 200-day line.
The On-Balance-Volume (OBV) line made a higher low in May versus late March for a bullish divergence as prices made a lower low in May. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but currently pointed down in a take profit sell mode.
In the weekly Japanese candlestick chart of MDB, below, we can see a top reversal pattern in June. Prices are correcting and the indicators show some weakness.
MDB is trading above the rising 40-week moving average line but the OBV line is edging lower and the MACD oscillator is narrowing.
In this daily Point and Figure chart of MDB, below, we can see a potential downside price target in the $305 area.
In this weekly Point and Figure chart of MDB, below, we can see that the software is reading things as bullish with a $701 price tag. Impressive.
Bottom-line strategy: Things could be a little touch and go with MDB right now. Keeping that in mind, aggressive traders could go long MDB at current levels risking to $329. Strength above $400 will be very positive. Our first price target is $425.