Is MongoDB a good database management stock to own? By StockNews

© Reuters. Is MongoDB a good database management stock to own?

Database management company MongoDB (NASDAQ 🙂 has grown in importance due to rapid digitization and technological transformation. However, the rise in Treasury yields has raised concerns among investors about the growth prospects for the tech industry, causing the company’s stock price to drop 12.7% in the past month. So, given MDB’s disappointing financial data and premium valuation, is it worth betting on the stock now? Read on to find out more.MongoDB Inc. (MDB), headquartered in New York City, is a modern and versatile database platform designed to maximize the potential of software and data for developers and operators alike. applications they create. The stock has gained 45.6% of its price over the past year by capitalizing on rapid digital transformation and the heavy reliance of business organizations on cloud collaboration platforms to handle high volumes of business. business data and improve scalability.

However, the company’s shares were down 12.7% in the past month as tech stocks sold off last month due to rising interest rates. Higher 10-year Treasury yields have been a concern for tech investors, as rising interest rates reduce the long-term growth potential of fast-growing tech companies.

In addition, the strong growth prospects of the industry promote fierce competition between existing and new players. Investor optimism regarding the growth of the industry has led the stocks of several industry players, including MDB, to reach valuations that are not in line with their current or projected financial data. Additionally, with US Treasury yields rising ahead of the Federal Reserve’s December policy meeting, MDB stocks could suffer in the near term.

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Maria H. Underwood