Who Is MongoDB? A Surprise Breakout Candidate in the AI Space
If this stock can hold its momentum, it looks poised for a push to the $300 range.
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I am feeling a bit of AI overload after the onslaught of Nvidia NVDA analysis, talking about every tick, every little detail of their most recent report.
The mass media has forgotten that this is a market of stocks. Yes, Nvidia sits as the third-largest company. It has profit margins double or nearly double the size of all the other companies in the top 10 as measured by market cap, but if investors spend all their time focused on a single name, they will miss opportunities with more upside.
Speaking of AI, Dell DELL reported strong earnings after the bell on Thursday. The company reported earnings per share of $1.89 versus estimates of $1.74. Revenue climbed 9% year over year, which is not nearly as impressive as Nvidia, but record servers and networking revenue skyrocketed 80%, and the Record Infrastructure Solutions Group (ISG) posted 38% growth overall.
The guidance did come in shy of current estimates, taking some shine off the after-hours pop. Shares remain within the right shoulder of the current bullish inverse head-and-shoulders pattern I posted earlier this week, but with both Nvidia and Dell earnings behind us, now we can watch for a breakout or breakdown.
Another breakout I’m watching is MongoDB MDB. This is another name making moves in the AI space. This segment from the company’s press release will be discussed and analyzed by traders looking for less talked-about names in the AI sector:
"The MongoDB AI Applications Program (MAAP) was made generally available to customers in July. MAAP brings together an ecosystem of companies — including tech leaders like AWS, Google Cloud, Microsoft Azure, and Accenture as well as gen AI innovators like Anthropic, Cohere and Fireworks AI — to offer an end-to-end AI technology stack, professional services, and a unified support system that helps customers quickly build and deploy AI applications. Organizations are eager to adopt AI, and MAAP makes it easier for them to confidently move from concept to production."
Checking out the chart, the company appears set to open in the late May gap. Bulls should find support in the $265 to $270 range with an eye on the gap fill to $310. If the stock can hold momentum on Friday and early next week, I’ll be looking for a push to $300. Aggressive traders may approach this trade with a partial entry near the end of the day today with an increased position later next week if the move holds.
At the time of publication, Byrne had no positions in any securities mentioned.
