Paradis
AI & Technology Investment Research
MongoDB is one of the better-positioned names in software because every AI agent interaction drives database activity. It should capture some non-zero share of that massive market. CJ's departure is just about securing the bag and shouldn't be read into further. x.comÂ
MongoDB's after-hours drop is worth taking the other side of, because the Atlas shortfall is a comp, not a demand problem. Q2 revenue rose 30% to $771.8M, about $38M above estimates; EPS was $1.90 versus $1.61; RPO rose 91% and cRPO 73%; free cash flow nearly doubled to $137.6M; and non-GAAP operating margin rose 900bps to 24%. The full-year guide went up, mostly on Atlas. Shares fell about 12% because Atlas grew 29% against a 30% whisper. Better to own the backlog than the bogey. x.comÂ
MongoDB's CEO CJ Desai leaving after less than a year for a non-CEO role, even at Meta, is a red flag that raises the question of what he knows. It comes the same week as the company's investor day and makes its large correction less appealing to buy. Merely reaffirming guidance this far into the quarter may also disappoint, even though its consumption-model guide is conservative and should be comfortably surpassed. x.com x.comÂ
Mark Zuckerberg picking CJ, when he could have lured almost anyone with a big package, is probably bullish for MongoDB. x.comÂ
Microsoft is one of the only good values left in tech, while names such as Snowflake, Rubrik, Samsara and MongoDB look far too bubbly. If the stock simply returns to its highs, the gains are straightforward. x.comÂ
MongoDB's leadership churn undermines its turnaround. Per Wall St Engine, CEO CJ Desai stepped down effective immediately for a senior role at Meta, with founder and former CEO Dev Ittycheria returning as interim CEO, though MongoDB reaffirmed its Q3 and FY27 guidance. Dev quit halfway through the 3.0 transformation, and CJ did not even last the year. x.comÂ
Meta Platforms is one of the few good values left in tech, alongside Microsoft, at a time when Snowflake, Rubrik, Samsara and MongoDB all look too bubbly to buy. If the stock returns to its highs, it is easy money. x.comÂ
Oracle's expensive, legacy SQL database is the most obvious target as AI makes database migrations far easier, with open-source SQL such as Postgres and MongoDB the likely winners. The stock may not react immediately, but this is what causes trouble one to two years out once the numbers come in. Oracle's new AI cloud may offset some of the headwinds to its SQL cash cow. x.com x.com x.com x.com x.comÂ
MongoDB faces a de-rating risk if Atlas growth slows, because buy-side models assume too much. Atlas is about 75% of the business, and most buy-siders model 33-35% growth plus more on top. Management's guide of 26% is conservative and growth has not slowed yet, but if it does, revised models and higher yields would hit the stock hard; it may move to the sidelines for the next two quarters. @kawhisnake counters that RPO and current RPO are growing strongly. x.com x.comÂ
Elastic risks being a jack of all trades and master of none, fighting a multi-front war in search, observability and security in the AI age. AI search competition is ferocious from Pinecone, Weaviate, Atlas Vector, pgvector and Turbopuffer, ClickHouse competes on machine data, and Braintrust leads LLM observability. The bull case is that search is the most AI-relevant primitive and a quarter of Elastic's $100k+ customers run AI use cases, but its AI revenue is indirect, with no hero product. … Show more