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MongoDB (NASDAQ: MDB) provides the right software but remains a bad deal. MDB’s stock is not yet in a position to get the money it has cost to earn.
MongoDB is a database software that Apple announced in 2007 in the open source base. Instead of structured data, it uses documents based on Javascript Object Notation (JSON). This allows non-programmers to create databases directly from spreadsheets.
However, with the software devouring the global pandemic, MongoDB is a hot stock. It opens on July 21 at $223 in line with the stock, a market position capitalization of $11.2 five billion. Shares have risen by more than 5% so far in 2020.
What could be wrong?
Monpass and Atlas’ controlled business database, a cloud-based offering, makes money. This is true, the code-behind is free, it was downloaded 3 million times in the last year alone.
Revenue grew 57% during the 2020 fiscal year ending in January, to $421 million. But losses grew even faster, to $3.14 per share from $1.90.
The change was, of course, necessary. Eliot Horowitz, co-founder and leading generation officer, is now an advisor. His replacement is Mark Porter, who has worked in corporations such as Amazon (NASDAQ: AMZN) and Oracle (NASDAQ: ORCL), which make money.
The new pitch is that MongoDB offers a way out of “data sprawl,” databases generated on every device and system you can name. The latest version, MongoDB 4.4, provides a “document data model,” a contextual map, that lets all types of data be queried using the same Application Program Interface (API).
In the cloud version, Atlas Search is deeply incorporated into Atlas Data Lake and Atlas Realms, which involve data. Once an index is created, difficult searches are performed without additional encoding.
Investors now pay virtually their best friend 2 times the profits of an apple that has never earned money. Due to open source, MonpassDB faces a giant competition, with Amazon’s supported offerings as an example. Cloud Czars are all in the Monpass market, adding Alphabet (NASDAQ: GOOGL, NASDAQ: GOOG) and Microcushy (NASDAQ: MSFT). The same is happening with older database giants like IBM (NYSE: IBM) and Oracle. All those corporations make money. Monpass doesn’t.
What Monpass has is the affection of its consumers. The variety of consumers is expanding through 30% year-on-year, across 37% in Atlas, and the diversity of spending of more than $100,000 consistent with the year can also increase by 30%. MonpassDB has about $1 billion in coins and a maximum of debt, they are convertible banknotes. Executives and administrators hold up to 56% of voting shares.
I’m a big mongoDB fan. I’m a big fan of open source and corporations that create wonderful products.
But the main benefits of open source pass to users, not creators. It is passods created with open source that add value, not code-behind. If you buy MDB shares today, bet atlas is starting out as a rocket and evolving to generate profits that time.
I like to buy corporations that are making a profit as they grow.
Dana Blankenhorn has been an economic and generation journalist since 1978. His main book is the Big Bang of Technology: yesterday, today and tomorrow with Moore’s Law, essays on generation that will be held in The Amazon Kindle Store. Write to [email protected] or stay on Twitter on @danablankenhorn. At the time of writing, he held shares in MSFT, AMZN, and IBM.
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