The stock recently garnered some upgrades from top Wall Street firms in addition to the positive coverage at Goldman Sachs, which said this:
MongoDB saw a record +2000 Direct Customer additions in 2022 versus +1400 in 2021 and +250 in 2020. We note that MongoDB’s record new business activity comes despite worsening operating conditions through the course of 2022, which we believe demonstrates the growing strategic value of its platform and strong return-on-investment for its customers.
The Goldman Sachs price target of $280 compares with the $253.12 consensus target, as well as Tuesday’s $212.91 close. That was down almost 5% on the day, but MongoDB stock also rallied big after the market closed. Hitting the Goldman Sachs target would be a 25% gain.
Snowflake
Surprisingly, Warren Buffett has shares of this top software company in the Berkshire Hathaway portfolio. Snowflake Inc. (NYSE: SNOW) provides cloud-based data platforms in the United States and internationally. Its platform offers Data Cloud, an ecosystem that enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications and share data.
According to the research report:
Snowflake added a record +146 Customers >$1million in 2022 vs. 107 in 2021 and +36 in 2020, while adding +1884 total new customers (vs. +1805 in 2021). We believe this speaks to the importance CIOs place on data and analytics despite ongoing budget tightening. Despite the strength in new business activity, Snowflake cited more methodical deployment times in younger customer cohorts (primarily G2K) as these customers seek to better control costs in an uncertain environment, which drove its below-Consensus product revenue guide of 40% in fiscal 2024.
The $185 Goldman Sachs target price is higher than the $181.21 consensus target. The stock closed almost 5% lower Tuesday at $135.48, and like the rest, shares rallied later after the positive reports from big tech. Hitting the Snowflake stock target would be a solid 30% gain.
With earnings reports from these top companies still to come, it makes sense to consider partial positions now. The potential for the market to trade lower, combined with the fact that any earnings miss, or poor forward guidance, most of which should be factored in already, could cause any of these sector leaders to take a further hit.
Originally published at 24/7 Wall St.
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