When the S&P 500 (SPY) and Nasdaq (QQQ) traded at record new highs last Thursday, the perfect pricing left no room for disappointments. MongoDB (MDB) and retailer Costco (COST) did just that.
Cloud database supplier MongoDB lost 6.94% last Friday when it posted revenue growing by a solid 26.76% to $458 million. The $0.86 EPS annualizes to a 111.4 times P/E ratio. This is a premium price in light of the company’s Atlas revenue growing by 34% Y/Y, or 68% of its revenue. Moreover, MongoDB’s mention of operating as the second and third layer for customers building AI applications is hardly a catalyst.
Customers are still experimenting with AI. They may cancel subscriptions if the AI solution does not pay off.
Broadcom (AVGO) lost nearly 7% after posting results. Still, shareholders enjoyed the stock price nearly doubling from around $634.50 a year ago. The firm is relying on networking and AI products to achieve its 2024 guidance. Hyperscale, AI, Telco, and Enterprise are among Broadcom’s growth drivers.
Costco dropped sharply after posting its second-quarter results. Comparable sales grew by only 4.8% in the U.S. Fortunately, the firm has a strong membership renewal rate, which boosts profit margins.
Etsy gained nearly 6% and needs buying momentum this morning to trade back to $80. Unfortunately, the firm is not growing. The 4.3% Y/Y revenue growth is too weak.
