Don't Buy the AI Hype: Avoid This Crashing Software Stock
Nearly every software company is talking up the potential of artificial intelligence, but not every software company will benefit in a meaningful way. Database software provider (NASDAQ: MDB) reported disappointing results and provided lackluster guidance last week, and the company's optimistic talk about AI wasn't enough to prevent the stock from tumbling.
MongoDB CEO Dev Ittycheria opened the company's earnings report with a statement about the opportunity presented by AI. MongoDB sees AI spurring companies running legacy workloads to modernize those workloads, thus opening the door for MongoDB's database to replace legacy alternatives. "We are confident MongoDB will be a substantial beneficiary of this next wave of application development," Ittycheria said.
The big question to ask is this: Is MongoDB any better positioned than its myriad competitors to win market share as AI drives workload modernization? I think the answer is no. Developers are spoiled for choice in the database software market. Managed database products like MongoDB's Atlas are everywhere.
Source Fool.com
MongoDB Inc. Stock
With 48 Buy predictions and 2 Sell predictions MongoDB Inc. is one of the favorites of our community.
As a result the target price of 321 € shows a positive potential of 22.94% compared to the current price of 261.1 € for MongoDB Inc..
