Sigma Zero Capital
Founder of Sigma Zero Capital, Thematic Trader
Mark Zuckerberg picking CJ, when he could have lured almost anyone with a big package, is probably bullish for MongoDB. 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
MongoDB is a Buy through the AI sector selloff because AI is not replacing it; its simple architecture should win against bolt-on vector stores. x.comÂ
Most rivals cannot match these 12 stocks' moats. Micron is one of three HBM titans; Circle backs USDC; ASML alone makes EUV; Planet Labs has the largest Earth-imaging fleet. MongoDB is developers' choice; Affirm embeds at Amazon and Shopify; Eli Lilly leads GLP-1; SoFi spans loans, banking and investing. On gains via CloudTec; AST SpaceMobile builds phone satellites; Rigetti offers cloud quantum computing; Spotify, the largest music streamer, adds podcasts and audiobooks. x.com x.com x.com x.com … Show more
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
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
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
MongoDB should probably trade closer to 6-7x forward revenue instead of 9-10x, since the premium multiple it carried, perhaps because of its CEO, is being taken away. 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