A pattern is emerging in the software sector right now, and MongoDB Inc (NASDAQ: MDB) is the latest company to fit it. A stock gets crushed on fears that AI will disrupt its business model. The selloff goes further than anyone expected. Then the company reports earnings, the numbers don't just hold up but accelerate, and the market scrambles to reprice. Snowflake (NYSE: SNOW) did it. ServiceNow (NYSE: NOW) did it. HubSpot (NYSE: HUBS) looks like it’s starting to do it.
Now MongoDB, which had shed more than 40% from the start of January to April, is doing it too, with shares surging following last week’s earnings report that left little room for the bears to argue. The stock’s recovery was already starting to take shape before last week’s update, but the report itself was the confirmation the bulls had been waiting for.
