Mongodb would add more than $ 5.2 billion to its market capitalization of $ 17.51 billion.
Generative AI apps process huge amounts of unstructured data, stimulate the demand for cloud databases such as Atlas that can quickly collect information and can also apply chatbots, recommendations and search aids.
As companies build and implement more AI functions, the use of AI-ready databases and related services has increased. This has translated into faster sales growth for platforms that integrate with large clouds and AI tools.
“We are encouraged by the strong go-to-market momentum of Mongodb in startup and business customers, thanks to the redistribution of market sources and product improvements in artificial intelligence,” said Luke Yang, analyst at Morningstar.
Analysts also said that redistribution of sales resources to concentrate on Enterprise customers will stimulate the use of the largest customers of Mongodb. The company increased its annual adapted profit forecast between $ 3.64 and $ 3.73 per share, from the earlier prediction of $ 2.94 to $ 3.12 per share. It is expected that the turnover will be between $ 2.34 billion and $ 2.36 billion in the tax year ending in January, an increase in the earlier prediction of $ 2.25 billion to $ 2.29 billion.
Both revenue and profit forecasts were above Wall Street estimates.
More than 15 analysts increased their target for the shares. The average rating for the company’s shares is “buy”, with a median price target of $ 325.
The shares trade 58.6 times the winning tramps, compared to 140.91 for snowflake and 32.85 for Oracle.
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