MongoDB crashed 27%, is it time to buy?

Published first at https://www.3minutebreakdowns.com MongoDB stock analysis. Ticker: $MDB MongoDB reported earnings last week and the stock cratered 27%. Shares are now down 54% over the past year. At the recent price, MongoDB now has a market value of 15.9 billion dollars. The company has a solid balance sheet with 2.3 billion of cash and no debt so the enterprise value is 13.6 billion. Meanwhile, MongoDB has reported 2 billion of revenue over the past 12 months 1.5 billion of gross profit and 115 million of free cash flow. However, the company is not yet GAAP profitable due to a large amount of stock based compensation - almost half a billion. The global database market is perhaps the largest in software but is currently dominated by legacy products that are not equipped for today’s applications. MongoDB, offers a flexible, modern platform that can handle structured and unstructured data. The product is clearly valuable since MongoDB has more than 10xd its annual revenues over the last 7 years. However, shares collapsed on Thursday due to weak forward guidance. Revenue is forecast to grow only 12 to 14% this year, a significant slowdown. After all, Mongo grew 19% last year, 31% the year before and 47% the year before that.