MongoDB Stock Drops Despite Earnings Beat: Buy-The-Dip Opportunity?

MongoDB Inc (NASDAQ:MDB), reported its fourth-quarter earnings on March 7. The stock is down 7% since then, despite the company reporting a 82.98% surprise on EPS and a 5.60% surprise on revenue.

Nonetheless, the report failed to lift the stock as guidance fell short of estimates.

Related: MongoDB’s Concerns About Outlook Despite Strong Q4 Results: Analysts Revise Forecasts

Having delivered 82%+ price returns over the past year, MongoDB’s stock is down over 10% so far this year.

Let’s looks at some technical indicators to see whether the stock is offering a buy-the-dip opportunity here.

MongoDb Stock Technical Setup Post Q4 Earnings

Charts indicate that the the prevailing trend for MongoDB stock is strongly bearish.

The share price is currently trading below its 5, 20, and 50-day exponential moving averages (EMAs). This indicates considerable selling pressure, posing a risk of further bearish movement.

Moreover, the 20-day SMA is $446.89, and the 50-day SMA is $421.51, both indicating bearish signals. The stock’s price of $369.22 is below the 200-day simple moving average of $387.39, reinforcing the negative outlook.

The Moving Average Convergence Divergence (MACD) indicator is 21.57, which is viewed as a bullish sign, while the Relative Strength Index (RSI) at 24.84 implies that MongoDB is oversold.

However, caution is advised as the Bollinger Bands (25) indicate a bearish signal with a range of $420.69 – $474.27, and the Bollinger Bands (100) reinforce this sentiment with a range of $364.94 – $440.6.

MongoDB Analysts Consensus Ratings

Ratings & Consensus Estimates:The consensus analyst rating on MongoDB stock stands at a Buy, currently with a price target of $439.18.

Price Action: MongoDB stock closed 4.2% lower at $366.99 on Monday.

Photo: Michael Vi/Shutterstock

Latest Ratings for MDB

Date Firm Action From To
Mar 2022 Needham Maintains Buy
Mar 2022 Mizuho Maintains Neutral
Mar 2022 Barclays Maintains Overweight