Technology stocks received conspicuous attention this week. Investors seek securities with a high potential for growth. Analysts continued to recommend oversold technology stocks. While MongoDB Inc. (NASDAQ:MDB) is not oversold, it still attracts attention.
MDB is a medium-sized growth stock invested in a document-oriented database. It is highly popular with developers, and the brand is highly recognized in the markets. The familiarity has been a key factor driving interest in the stock. Apart from the brand, investors consider the company as having high potential for growth.
The performance of MDB is a major reason why investors continue to follow the stock. MDB is not yet profitable, with the most recent earnings showing a per-share loss of $0.09 against analyst projects of $0.21. For a similar period last year, the company reported a per-share loss of $0.33. MDB beat investor expectations reporting a 56% increase in revenues.
MongoDB faces resistance at $400, pull back expected in the coming week
Source – TradingView
MDB appears to have resumed a bullish trend. After opening the week at $314.80, MDB closed the week higher at $398.10. The stock is however facing resistance at $400. Investors wait to see how the stock will behave in the coming week. We project that MDB will pull back as the 10-day moving average slips below the 20-day and 50-day moving averages. Using the 10-day moving average as a guide, the company can be expected to close next week at a lower price of $385.
Summary
MongoDB is a mid-cap growth stock. The company has been reducing the per-share loss as revenues grow rapidly. However, investing at the current high prices may not be a good idea as the share price is expected to pull back from the current level close to $400.
The post MongoDB is an attractive growth tech stock but not at current prices. Here is why appeared first on Invezz.
