MDB Trades Near 52-Week High: Should Investors Still Buy the Stock?

MongoDB MDB shares closed at $411.19 on Tuesday, Jan. 13, very close to the 52-week high of $444.72, which it hit on Jan. 7. MDB shares have jumped 97% over the trailing six months, outperforming the Zacks Internet-Software industry’s decline of 7.4% and the Zacks Computer and Technology sector's return of 19.1%. 

The rally reflects accelerating Atlas adoption and rising platform demand as customers increasingly build AI-driven applications on MDB’s architecture.

MDB’s Six-Month Price Performance

MDB’s Atlas Platform Drives Enterprise Adoption

Atlas functions as a unified operational data platform, supporting transactional workloads, full-text search, vector search and stream processing within a single architecture. Its document-based model handles structured, semi-structured and unstructured data in one schema, allowing enterprises to replace rigid relational databases with a flexible foundation built for modern application development.

This architecture has enabled large-scale enterprise deployments. A global insurance provider adopted Atlas to modernize mission-critical systems, including policy administration, analytics rating, and unstructured data repositories. Following the migration, the insurer expanded from limited regional operations to nationwide coverage, accelerating product launches and distribution scale. A global media company re-architected its data stack on Atlas and Atlas Vector Search to improve content recommendations across more than 70 websites, cutting latency by 90%, lowering operating costs by 65% and increasing click-through rates by 35%.

These deployments are translating into sustained momentum. Atlas revenues grew 30% year over year in the fiscal third quarter and accounted for 75% of total revenues. The Zacks Consensus Estimate for fiscal 2026 Atlas revenues is pegged at $1.8 billion, indicating 28% year-over-year growth. The consensus estimate for Atlas customers stands at 62,351, up 17.4% year over year, reinforcing Atlas as MDB’s core growth driver.

MDB Positioned to Capture AI Infrastructure Opportunity

MDB is strengthening its role within the AI infrastructure stack as enterprises move from pilot projects to production-scale applications. Atlas' JSON-native architecture offers structural advantages over relational systems such as PostgreSQL, which rely on external extensions like pgvector for vector workloads. The document model handles diverse, rapidly changing data, while integrated search and vector capabilities eliminate the need for bolt-ons.

The February 2025 acquisition of Voyage AI embedded advanced AI models directly into the platform. These embedding and reranking models enable AI applications to deliver more grounded responses with fewer LLM hallucinations while lowering storage and query costs, providing enterprises with improved accuracy and efficiency for AI workloads.

AI-native companies are building on the platform at scale. Mercor uses Atlas to power its automated hiring platform, utilising Voyage embeddings and Atlas Vector Search. The platform has scaled to support Mercor's 50% month-over-month growth as the company expands to over $10 billion in valuation, demonstrating Atlas' ability to handle explosive AI workload growth.

MDB Benefits From Expanding Partner and Customer Ecosystem

MDB’s ecosystem continues to scale through a go-to-market model that combines enterprise sales, self-serve adoption and deep hyperscaler partnerships. Native integrations with Amazon’s AMZN AWS, Microsoft’s MSFT Azure, and Alphabet’s GOOGL Google Cloud Platform place Atlas directly inside enterprise cloud environments, reducing deployment friction and supporting multi-cloud strategies.

Customer expansion remains steady. MDB added 2,600 customers in the fiscal third quarter, bringing the total base to more than 62,500, up 18.8% year over year. In the first nine months of fiscal 2026, customer additions reached 8,000, representing 65% growth versus the prior-year period, driven primarily by self-serve adoption. The Zacks Consensus Estimate for fiscal 2026 total customers is pegged at 64,200, up 17.8% year over year.

MDB’s partner ecosystem reinforces this momentum. As enterprises standardize cloud strategies around Amazon, Microsoft and Alphabet platforms, Atlas benefits from native integration across these environments. This alignment strengthens MDB’s role as the operational database layer across hybrid and multi-cloud architectures, supporting ecosystem-driven growth and long-term expansion.

MDB’s Valuation Reflects Platform Strength

MDB trades at a forward 12-month price-to-sales multiple of 11.77x, compared with the industry average of 4.65x and the sector average of 7.47x. Despite trading at a premium, the valuation is underpinned by steady consensus estimates and a clearer earnings trajectory. The Zacks Consensus Estimate for fiscal 2026 earnings per share is pegged at $4.79, unchanged over the past 30 days and implying a 30.87% year-over-year increase.

MongoDB, Inc. Price and Consensus

MongoDB, Inc. price-consensus-chart | MongoDB, Inc. Quote

The valuation premium is reinforced by Atlas execution and usage trends. Rather than showing signs of saturation, Atlas continues to deepen enterprise penetration through expanding workloads and higher consumption intensity. The platform’s consumption-led model supports durable growth characteristics and reinforces confidence in scalability as Atlas matures.

MDB’s Valuation

Conclusion

MDB’s fundamentals remain strong despite the stock trading near its highs. Atlas continues to deepen enterprise and AI infrastructure adoption, supported by MDB’s tight alignment with cloud ecosystems from Amazon, Microsoft and Alphabet. With stable earnings expectations, a consumption-led growth model and increasing relevance in production-scale AI workloads, MDB’s premium valuation appears supported by platform strength, making the stock attractive at current levels.

MongoDB currently sports a Zacks Rank #1 (Strong Buy), and Investors may consider accumulating the stock at current levels. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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