MongoDB stock has ‘massive opportunity’, but is the upside priced in already?

MongoDB Inc (NASDAQ: MDB) opened more than 30% up this morning after reporting a strong second quarter and raising guidance for the future.

The database firm expanded its operating margins in Q2 and added 5,000 new customers, which, according to its chief executive, Dev Ittycheria, is “the most we have acquired in the history of the company.”

Still, up nearly 100% versus its year-to-date low, and with a price-to-sales (P/S) multiple of nearly 9.0, it’s reasonable to question whether the upside is already priced into MongoDB stock at current levels.  

Why MongoDB stock has massive further room to the upside

According to MongoDB chief executive Dev Ittycheria, “the opportunity in front of us is massive,” which may translate to continued upside for the company’s share price.

In a post-earnings interview with CNBC, Ittycheria said MDB currently owns only 2% of a hundred billion dollar total addressable market (TAM).

“If we get 5.0% share, we’re a $5.0 billion revenue company,” he added, further substantiating that MongoDB shares indeed have massive room to the upside.

Note that MongoDB’s fully managed, cloud-based database service, Atlas, grew 29% on a year-over-year basis in Q2.

“There’s not many cloud businesses that are growing that fast at that scale,” Ittycheria added.

That said, MDB stock doesn’t currently pay a dividend and, therefore, remains unattractive for the income-focused investors in the second half of 2025.

MDB shares are positioned to benefit from AI tailwinds

MongoDB shares are worth owning at current levels also because they have artificial intelligence (AI) winds at their back.

According to Dev Ittycheria, enterprise AI adoption remains rather cautious and incremental – not transformative yet.

CIOs are wary of reliability issues, security risks, and unclear ROI.

While early use cases, including code generation and chatbots, are gaining traction, large-scale deployment is slow due to management hurdles.

This measured pace benefits MDB shares because it gives enterprises time to modernise their data infrastructure first – often using MongoDB’s flexible, developer-friendly platform.

As AI matures, demand for scalable, secure databases will rise, positioning the firm as a foundational layer for future AI workloads.

Ittycheria’s tone signals long-term tailwinds, not short-term hype, which reassures investors about MongoDB’s strategic relevance and durability in the evolving tech landscape.

How Wall Street recommends playing MongoDB shares

Despite an upbeat earnings release and the CEO’s constructive remarks, KeyBanc analysts continue to rate MongoDB stock at “sector weight” only.

For investors, though, the good news is: KeyBanc is among the more bearish investment firms on MDB shares.

Others on Wall Street actually disagree with its cautious stance on the database firm.

According to The Wall Street Journal, the consensus rating on MongoDB remains an “overweight” with the mean target of roughly $306, indicating potential upside of another 7.0% from here.

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