What Happened?
A number of stocks jumped in the afternoon session after MongoDB reported impressive earnings.
The data analytics company saw its shares jump nearly 40% after announcing much stronger-than-expected results, including a revenue beat and an optimistic outlook for the upcoming quarter. This performance suggested robust demand for its cloud-based database services, leading investors to believe the broader data storage and SaaS sectors are experiencing similar health. The positive sentiment created a ripple effect, with peers like DigitalOcean and Snowflake also seeing significant gains and outperforming the general market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Lending Software company Upstart (NASDAQ: UPST) jumped 3.2%. Is now the time to buy Upstart? Access our full analysis report here, it’s free.
- Project Management Software company monday.com (NASDAQ: MNDY) jumped 3.3%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
- Healthcare And Life Sciences Software company Veeva Systems (NYSE: VEEV) jumped 3.2%. Is now the time to buy Veeva Systems? Access our full analysis report here, it’s free.
Zooming In On monday.com (MNDY)
monday.com’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 3.1% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
monday.com is down 22.3% since the beginning of the year, and at $181.80 per share, it is trading 44.6% below its 52-week high of $327.92 from February 2025. Investors who bought $1,000 worth of monday.com’s shares at the IPO in June 2021 would now be looking at an investment worth $1,004.
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