MongoDB (MDB) Growth Rose 78% this Quarter Means What? 🚀 GET LONG

Updated: Jul 10, 2019

June 26, 2919 - Updated

BotTrigger Trade Alert & Update: $MDB we have now been filled on our limit order to buy the November 15, 2019 $180 / $200 vertical call spread @ 5.00 (net filled @ $4.90). Discipline rewards: we were patient on NVDA, TSLA & now our MDB position has been filled (NVDA is now the source of our 3rd largest gainers in the portfolio).

On MDB we didn't FOMO and buy the post earnings surge up around the mid $180s. We laid out a solid case for why the pullback would inevitably come and in due time that pullback has indeed fleshed out. Very simply, MDB is renown (as or most stocks that uptrend) by following a very simple pattern that is almost requisite in stocks that "stair-step" higher which is that they almost always revisit their LAST PIVOT HIGH (circled in yellow highlight). We got that here today with MDB. Next we want to see a near -20% pullback on MDB which is the discounted value that usually commences the reversal zone where the stock starts to get reaccumulated. We're not quite there but close enough for this November call spread which expires in a little less than 5 months. MDB is now down about -18% from the highs. We can push a little lower but we're right @ a great support zone where we should expect the stock to start to catch a solid bid. PATIENCE WILL PAY OFF.

REMEMBER → STAY LONG BTC. We're likely to get a -30% range pullback @ some point, and that will be your Q to add into that pullback.

June 7, 2019 - Original Post

BotTrigger Trade Alert: $MDB MongoDB we're setting a GTC (good till cancelled) limit order to add the November $180 / $200 vertical call spread @ $4.00 for a 3% position.

MAX GAIN = $20 for a 400% gain opportunity so long as share price reaches @ $200 or greater than upon November 15, 2019 expiration.

Right now that spread is going for around $7.15 - $7.50. But the technical setup on MDB is consistently playing ball with the usual pattern of breaking out from extended bases (good) and then retesting that breakout & tagging the previous pivot high / breakout zone (good). It stair-steps higher beautifully. The pullback cycles when it tags the last pivot high usually sees around a -20% pullback from peak to trough. We want to be there catching the ball once we get that next -20% range pullback. If we can get filled @ $4.00 then the MAX GAIN on this trade would yield a 400% opportunity so long as share price reaches @ $200 or greater than UPON November 15, 2019 expiration. Right now the stock is in clear breakout mode with the stock up 15% today alone on an earnings beat. Revenue rose 78% in the quarter, which is substantially above the company's multi-year revenue growth trend. Total customers were up more than 100% in the quarter. They've signed up some of the biggest names on the Fortune 1000 list already. Here is a short list of clients they currently have contracts with to scale their databases: Coinbase, Google, Ebay, Cisco, Verizon, Medtronic, Adobe, UPS, Intuit, ShutterFly, Entertainment Arts, Verizon, KPMG, Sega, Nokia, GAP, and the list goes on

So what is MondoDB?

The story at MongoDB is pretty easy to understand, and it is one that lends itself to tremendous long term growth potential.
At the heart of every software application is a database. That database is used to store, organize, and process data. Traditionally, these databases were relational, meaning they were row-based. That’s because traditional data was almost always structured in a row-column manner.
But, modern data isn’t always structured as such. In fact, because we can now generate data through various channels, modern data is increasingly document-based and much more free-flowing. Enterprises need to store, organize, and process this document-based data, too. But, relational databases can’t do that efficiently. As such, there’s been a boom in the adoption of non-relational databases to handle this new data form.
MongoDB is one of these non-relational databases, but it’s different in one important way: It’s a hybrid database that combines the best aspects of non-relational and relational databases so that enterprises can handle all data formats.
This solution has been a huge hit. MongoDB has consistently grown revenues and customers at a 50%-plus rate over the past several years, with growth actually accelerating over the past several quarters thanks to more and more businesses understanding the benefit of a hybrid database solution.
The potential here is that MongoDB has just 14,200 customers. There are nearly 6 million employer businesses in the U.S. alone. Further, the company projects to do just $380 million in sales this year. The global software database market is closing in on $60 billion.
Broadly, then, MongoDB is a hyper-growth tech company, with a winning solution, that is rapidly gaining share in a big market, and which has a very long runway for future growth. That is a winning combination for MDB stock.
The Growth Boxes Are Checked Off
When it comes to long term winners like MDB, you want to buy them on weakness so long as all the growth boxes are checked off. Those growth boxes include:
1) still healthy revenue growth,
2) stable margins,
3) reasonable valuation
4) favorable backdrop
The Q1 report confirmed that MongoDB stock does check off all those boxes.
Revenue rose 78% in the quarter, which is substantially above the company’s multi-year revenue growth trend. Revenue growth is projected to remain very big for the foreseeable future, too. Customer growth trends likewise remain healthy. Total customers were up more than 100% in the quarter.
Gross margins are taking a step back. But, that’s because of some new business integration issues which will pass by the end of the year. Meanwhile, operating margins are substantially improving as robust revenue growth is driving equally robust opex leverage.
The valuation is rich. But, assuming this company can grow revenues at a 20%-plus rate over the next decade, maintain 70% gross margins, and drive the opex rate down to 30%, MongoDB could easily be looking at $10-plus in EPS by 2030. A big growth average 30-forward multiple on that implies a 2029 price target for MDB stock of $300 or more. So, long term upside remains compelling.
Lastly, the backdrop is still favorable. This company has minimal trade exposure because it’s a services business. An economic slowdown does pose a threat, but the secular pivot towards hybrid databases is likely strong enough to offset such weakness. Meanwhile, new data is increasingly not in a row-column format. Companies are also increasingly adopting data-driven growth strategies. Thus, the need for an enterprise to adopt hybrid databases is only growing.
All in all, the current trends here remain favorable.
Bottom Line on MDB Stock
MDB stock is a long term winner that continues to be supported by favorable growth trends. So long as that remains true and the valuation remains reasonable in the big picture then MDB should remain on a medium to long term uptrend. Against the backdrop of that medium to long term uptrend, near term weakness is a buying opportunity.

Some of the greatest pearls shared by Jesse Livermore:

“Money is made by sitting, not trading.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

“Buy right, sit tight.”

“Nobody can catch all the fluctuations.”

“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

“It takes time to make money.”

“Don’t give me timing, give me time.”

  • stocktwits social icon
  • Twitter - Black Circle
  • Facebook - Black Circle
  • YouTube - Black Circle

513 Garden St - Studio C  |  Santa Barbara CA 93101  |   805-825-7777

© 2016-2019 by BotTrigger Inc.

These results are based on performance results that have certain inherent limitations. Each trade is executed in BotTrigger's S-Corp trading account in the BotTrigger portfolio managed exclusively by Mike Saad, founder & CEO of BotTrigger of Lovical Inc & Inc (umbrella corp). The performance results shown in BotTrigger's portfolio may vary at certain times of the day due to our API feeds that pull the current price of open or closed positions from Yahoo Finance.  Although BotTrigger has consistently outperformed the S&P 500 benchmark by more than 50% per annum since inception, August of 2016, no representation is being made & or promised that any account will or is likely to achieve profits or losses similar to these being shown. BotTrigger so far this 2018, is on pace to achieve it's largest annual YTD return now in it's 3rd year since inception. This performance assumption is not promised but is being communicated that so far we have achieved the highest rate of return on a YTD & YOY (year over year basis). If a majority of our trade setups fail to materialize based on our analysis or trade thesis, it is absolutely possible to close below our running 50% average if not negative. BotTrigger may & often times does  implore hedging strategies and/or stop-loss precautions in the event that the BotTrigger portfolio sustains heavy losses that might cause the cumulative net value of BotTrigger's portfolio value to near below our 50% threshhold of YTD gains. Our goal at minimum is to be up YTD by up to at least 50% or greater. In the event the net weighting of our trade allocations drops the entire portfolio value below this threshold, then triggered sell signals are generated to reduce to a sizeable position of cash.

Past performance is no guarantee of future results and may not reflect potential deductions for fees which may reduce actual realized returns. Any historical returns may not reflect actual future performance and any investor on BotTrigger may experience different results from those shown. All our trade alerts are real-time but in some cases may be delayed due to technical delays with our SMS/MMS delivery provider or the speed in which a Member's mobile carrier accepts the depository of our delivered communications and then how soon a Member's carrier may deliver that trade alert/ message to our Members. Delivery times are nearly instant from the time we click "SEND" and often delivered to Member's mobile phones within 10 to 30 seconds; but on very rare occasion that delivery might get bounced or delayed; again this is rare but it has been known to happen. There will be times that BotTrigger's communicated entry is below or above the pricing our Members may receive communication due to market delays or delays with our SMS/MMS Mobile Text delivery provider, EzTexting 

Disclaimer: Neither the SEC nor any state securities commission or regulatory authority approved, passed upon or endorsed the merits of any investment on the BotTrigger platform.

BotTrigger’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”). BotTrigger does not accept any trading capital from Members or any respective parties with regards to BotTrigger's S-Corp under Lovical Inc &

Privacy Statement