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MongoDB Inc (NASDAQ:MDB) is set to report fiscal first-quarter 2027 results Thursday after the bell, with Wedbush maintaining its Outperform rating and $380 price target ahead of the print, arguing the Street's revenue expectations are too conservative and that the database company remains in the early stages of capitalizing on its AI strategy.

Wedbushโ€™s Dan Ives kept MongoDB on the firm's IVES AI 30 list, citing the company's consumption-based strategy and expanding reach across enterprise channels, particularly in US Enterprise and the mid-market.

The firm views the Street's consensus revenue estimate of $664.5 million for FQ1'27 as conservative, with Atlas consumption metrics seen as still in the early growth phase as more customers recognize the value of the MongoDB platform.

Wedbush also flagged the Atlas growth guidance of 26% for the quarter as a cautious figure, noting it implies a 300-basis-point deceleration from the prior quarter's close despite Atlas accounting for more than 70% of total revenue.

The analysts pointed to strong platform engagement as a positive indicator, noting that Atlas customers spending $100,000 or more in annual recurring revenue have been increasing the number of products used on the platform, with customers using two or more Atlas features up 800 basis points year-over-year. Customer retention rates have also trended higher consistently over recent quarters.

On the AI front, Wedbush views the company's recent acquisition of Voyage AI as central to its AI strategy, with the deal aimed at helping enterprises build reliable AI applications by connecting private and proprietary data directly to large language models.

Ives highlighted MongoDB's ability to assist organizations through migrations to new technologies across both on-premises and cloud environments, leveraging AI tools to simplify and validate the conversion process.

While Atlas represents approximately $2 billion in annual revenue today, Ives argued the company has yet to make a meaningful dent in what it sees as a total addressable market exceeding $100 billion, leaving significant runway for growth across mid-market and enterprise customer segments.