Boersly Weekly: Bullish Momentum Builds, Yet Caution Warranted on China and U.S. Data
- Jun 10
- 17 min read
Updated: Jun 12
Tuesday, 10th of June
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What Moved The Market
Global markets posted strong gains last week, driven by robust economic data, improving sentiment, and optimism around U.S.-China trade discussions.
In the United States, all major indices ended the week higher:
The S&P 500 rose 1.5% to close at 6,000.36, returning to positive territory for the year.
The Dow Jones Industrial Average gained 1.2%, while the Nasdaq Composite advanced 2.2%, supported by strength in technology stocks.
The Russell 2000 surged 3.2%, reflecting a rebound in small-cap shares.
Markets were buoyed by a solid U.S. jobs report, with 139,000 jobs added in May, and increasing confidence from institutional investors. Ongoing U.S.-China trade talks in London also provided a constructive backdrop.
Globally, the MSCI World Index reached a new all-time high, indicating broad-based strength across equity markets. In contrast, Hong Kong's Hang Seng Index fell 1.32%, pressured by renewed U.S.-China tensions and targeted restrictions on China’s tech and EV sectors. Notably, China’s exports to the U.S. dropped 34.4% year-on-year in May.
Technical View and Risks
U.S. indices remain in a solid medium-term uptrend. As long as this trend holds, markets are likely to re-test their all-time highs in the coming weeks. The key question is whether this level will be rejected or mark the beginning of a sustained breakout to new highs. Technically, this is crucial to confirm whether the bull market that began in late 2022 is continuing.
Two key risk factors to watch:
U.S.-China tensions: Trump needs a deal with China, as hard data already suggests economic deterioration. At the same time, he is politically weakened and in need of success stories. The risk is that tensions with China or other countries could escalate again.
U.S. economic data: Hard data may worsen significantly in the weeks ahead, forcing downward revisions to earnings estimates for the S&P 500. A move back to all-time highs is still fundamentally supported by resilient earnings growth, but deteriorating macro data could challenge that view.
Reported Quarterly Earnings This Week
Asana (ASAN)
Key Financial Highlights – Q1 FY2026:
Revenue: $187.3 million, an 8.6% increase year-over-year, surpassing analyst expectations of $185.5 million.
Adjusted EPS: $0.05, exceeding the consensus estimate of $0.02.
Non-GAAP Operating Margin: Achieved a positive 4%, marking the company's first quarter of non-GAAP profitability.
Net Revenue Retention Rate: 95%, slightly below the expected 96%, due to pressures in the enterprise and middle-market segments.
Strategic and Product Developments:
AI Studio: Asana's AI Studio, launched in Q1, surpassed $1 million in annual recurring revenue (ARR) and is gaining traction across various industries, including manufacturing, financial services, and healthcare.
Major Enterprise Deal: Secured a three-year, $100 million contract with one of the world's largest employers, highlighting Asana's capability to manage complex, cross-functional workflows at scale.
Customer Growth: The number of core customers (spending $5,000 or more annually) grew to 24,297, a 10% increase year-over-year. Customers spending $100,000 or more annually rose by 20% to 728.
Market Reaction:
Despite the positive earnings and strategic developments, Asana's stock experienced a decline of approximately 12% following the earnings release, closing at $16.69. Investors expressed concerns over the slightly lowered full-year revenue guidance and anticipated pressures on net revenue retention rates.
As of June 10, 2025, Asana's stock is trading at $14.64 USD, reflecting a decrease of approximately 1.68% from the previous close.
Analysts:
Bank of America analyst Michael Funk has lowered the price target for Asana from $23 to $21 but maintains a “Buy” rating following the company’s “solid” first-quarter results. However, management reduced its revenue guidance to reflect increasing macroeconomic weakness in the enterprise segment. The analyst notes that progress on profitability was “impressive and exceeded Street expectations,” supporting the bull case for accelerated margin expansion.
Jefferies analyst Brent Thill raised the price target from $15 to $17 and maintains a “Hold” rating. While Q1 results exceeded expectations and the company signed a record $100 million three-year deal, the renewal came at a lower annual contract value. The analyst also notes that Asana is starting to experience longer sales cycles with increased scrutiny, and sees risks of further macroeconomic deterioration.
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Broadcom (AVGO)
Key Highlights:
Revenue: $15.0 billion, up 20% year-over-year.
Adjusted EPS: $1.58, a 44% increase from the previous year.
AI Chip Revenue: Surged 46% to over $4.4 billion; projected to reach $5.1 billion in the current quarter, up 60% year-over-year.
Infrastructure Software Revenue: Grew 25% to $6.6 billion, bolstered by VMware Cloud Foundation adoption.
Non-AI Semiconductor Revenue: Declined 5% to $4.0 billion, with expectations to remain at this level in the next quarter.
Q3 Revenue Guidance: Approximately $15.8 billion, indicating a 21% year-over-year increase.
CEO Hock Tan expressed confidence in sustained AI growth into 2026, citing robust demand from major clients like Google, Meta, and ByteDance.
Despite the strong performance, Broadcom's stock experienced a nearly 4% decline amid market trading concerns. Analysts responded positively, with at least 18 raising their price targets, highlighting Broadcom's bullish AI outlook and improved growth visibility. However, potential U.S. export restrictions to China pose risks, particularly affecting Broadcom’s business with ByteDance.
Market Reaction:
Broadcom shares dropped nearly 4% in after-hours trading following the earnings release.
Despite strong results and raised guidance, the selloff appears linked to profit-taking after a major rally and concerns about China-related risks.
Analysts:
Bank of America analyst Vivek Arya has raised the price target for Broadcom from $240 to $300 and maintains a “Buy” rating on the stock. While some may be disappointed that the semiconductor company did not update its estimated total addressable AI market for fiscal year 2026/27 (still at $60 to $90 billion), the analyst believes this is “only a matter of time,” especially since consensus estimates for AI revenue in that year remain well below $45 billion, leaving “plenty of room for upgrades.” Arya has raised his revenue growth estimates for fiscal years 2024/25, 2025/26, and 2026/27 by 1, 5, and 10 percent, respectively. EPS estimates were also raised. Investors are advised to focus on the “AI boost” and ignore the “quarterly noise.”
Evercore ISI analyst Mark Lipacis has raised the price target for Broadcom from $267 to $304 and maintains an “Outperform” rating. He explains that even after the April quarter results and the implied EPS guidance, which came in 1 cent below consensus, he remains a buyer of the stock. The “good news” is that AI revenue guidance for the July quarter is $5.1 billion, above his initial forecast of $4.9 billion. More importantly, the analyst expects the current momentum in AI revenue to continue through fiscal year 2025/26.
Mizuho analyst Vijay Rakesh has raised the price target for Broadcom from $300 to $310 and maintains an “Outperform” rating. The company reported results for the April quarter in line with expectations and gave an unsurprising forecast for the July quarter. The analyst expects Broadcom to see rising AI demand in the second half of the fiscal year. For the second half of fiscal 2025/26, AI semiconductor revenue is expected to rise more than 60 percent year-over-year.
Joseph Moore, analyst at Morgan Stanley, has raised the price target for Broadcom from $260 to $270 and maintains an “Overweight” rating. The quarter and guidance met expectations, as strong AI performance was offset by slightly weaker legacy semiconductors. However, the visibility of strong investments in inference led to a positive comment on AI prospects.
Rosenblatt analyst Hans Mosesmann has raised the price target for Broadcom from $223 to $340 and maintains a “Buy” rating. The company delivered a mostly in-line quarter with higher revenue from AI. The analyst notes that management, due to strong visibility with its three XPU customers, believes the strong growth can continue.
UBS analysts have raised the price target for Broadcom from $270 to $290 and maintain a “Buy” rating. Broadcom’s comments on AI were very optimistic, and its growth expectations for fiscal 2025/26 are about 10 percent above UBS’s previous forecasts.
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Ciena (CIEN)
Key Highlights (Q2 FY2025):
Revenue: $1.13 billion, up 24% year-over-year, beating analyst expectations of $1.09 billion.
Adjusted EPS: $0.42, missed expectations of $0.52 due to higher-than-expected operating costs.
Operating Expenses: $369 million, up significantly, mainly due to increased incentive compensation related to strong performance earlier in the fiscal year.
Cloud Segment Growth: Revenue from direct cloud providers grew 85% YoY, now making up 38% of total revenue.
Q3 Outlook:
Revenue guidance between $1.13B and $1.21B, above consensus ($1.1B).
Operating expenses expected to remain elevated at $370M–$375M.
Market Reaction
Stock Price Drop: Shares fell approximately 13% after the earnings release.
Reason for Decline: Despite strong top-line growth, investors reacted negatively to: EPS miss, ongoing margin pressure, continued high operating costs
Analysts:
UBS analyst David Vogt has raised the price target for Ciena from $73 to $78 and maintains a “Neutral” rating on the stock. While Ciena reported revenue above expectations, the strong top-line performance is likely to be overshadowed by weak gross margins. The analyst has increased his revenue growth forecast for fiscal year 2025 to 14 percent, up from the previous 11 percent, though this had been at least partially anticipated.
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CrowdStrike (CRWD)
Key Highlights – Q1 FY2025:
Revenue: $1.10 billion, a 19.8% increase year-over-year, slightly below the consensus estimate of $1.11 billion.
Adjusted EPS: $0.73, exceeding analyst expectations of $0.66.
Annual Recurring Revenue (ARR): $4.44 billion, up 21.6% year-over-year.
Net New ARR: $212 million, a 22% increase from the previous year.
Adjusted Operating Margin: 18.2%, surpassing analyst estimates of 13.1%.
Guidance & Strategic Initiatives:
Q2 Revenue Forecast: $1.145–$1.152 billion, below the consensus estimate of $1.16 billion.
Q2 Adjusted EPS Forecast: $0.82–$0.84, slightly above the consensus estimate of $0.81.
Full-Year Revenue Guidance: $4.744–$4.806 billion, aligning with analyst expectations.
Full-Year Adjusted EPS Guidance: $3.44–$3.56, exceeding the consensus estimate of $3.43.
Share Repurchase Program: Announced a $1 billion share buyback, indicating confidence in long-term growth.
CrowdStrike continues to focus on expanding its Falcon platform and integrating artificial intelligence to enhance cybersecurity solutions. The company anticipates that these initiatives will drive growth in the latter half of the fiscal year.
Market Reaction:
Despite the strong quarterly performance, CrowdStrike's stock declined approximately 6.5% in after-hours trading, closing at $457.09. The dip was primarily due to the company's Q2 revenue guidance falling short of analyst expectations.
As of June 10, 2025, CrowdStrike's stock is trading at $464.39 USD, reflecting a decrease of approximately 0.9% from the previous close.
Analysts:
Bernstein analyst Peter Weed has downgraded CrowdStrike from “Outperform” to “Market Perform” while keeping the price target unchanged at $371. Within his cybersecurity coverage, CrowdStrike is “a deservedly popular stock,” he says. However, at current levels, the stock is “VERY expensive.” The analyst notes that investors may have flocked to the cybersecurity sector as a whole, viewing it as relatively safe amid macroeconomic uncertainty. The downgrade is based on valuation concerns, and he sees Palo Alto Networks as an interesting alternative within the cybersecurity space.
Tal Liani, analyst at Bank of America, downgraded CrowdStrike from “Outperform” to “Neutral” but raised the price target from $420 to $470. While he views the company’s fundamentals and growth prospects positively, he believes the valuation offers “only limited upside” from current levels. Growth slowed to below 20% in the first half of fiscal 2025, and although the company expects an acceleration to around 22% in the second half, the analyst believes growth will decelerate in the coming years.
Canaccord analyst Kingsley Crane downgraded CrowdStrike from “Buy” to “Hold” but raised the price target from $420 to $475. The company reported solid Q1 results, but margins were below last year’s levels. Canaccord sees the stock's risk/reward profile as more balanced at this level, as the shares are trading at nearly 21 times estimated 2026 revenue.
Evercore ISI analyst Peter Levine downgraded CrowdStrike from “Outperform” to “In Line” and lowered the price target from $450 to $440. He noted growing investor frustration over several ongoing unresolved issues at the company. The analyst is taking a “pause” and waiting for more clarity before issuing further recommendations.
Jefferies analyst Joseph Gallo raised the price target from $410 to $520 and maintains a “Buy” rating. Annual recurring revenue growth of 21.6% in Q1 fell short of investor expectations of 22%, and subscription revenue also missed consensus due to headwinds from the bundling program. However, non-GAAP operating income and free cash flow exceeded expectations, and guidance was raised as management expressed confidence in free cash flow visibility driven by large Flex deals. Jefferies remains confident in CrowdStrike’s market position and its ability to reaccelerate ARR growth in the second half.
Morgan Stanley analyst Keith Weiss raised the price target from $455 to $490 and maintains an “Overweight” rating. The key metric, Net New ARR, came in at $194 million, 11% above consensus but below the highest expectations. As the stock gained over 20% during the quarter, expectations had become elevated. While it was a “good quarter,” the analyst is “waiting for a great second half,” expecting confirmation of accelerating ARR and expanding free cash flow margins. Despite the premium valuation, he believes the stock should find support.
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DocuSign (DOCU)
Q1 2026 Financial Highlights:
Revenue: $763.7 million, up 7.6% year-over-year, surpassing analyst expectations of $748 million.
Adjusted EPS: $0.90, beating the consensus estimate of $0.81.
Billings: $739.6 million, a 4% increase year-over-year, but below the projected range of $741 million to $751 million.
Strategic Initiatives:
CEO Allan Thygesen highlighted the company's ongoing transition to its AI-driven Intelligent Agreement Management (IAM) platform. This shift aims to enhance agreement workflows through artificial intelligence and automation.
Market Reaction:
Following the earnings release, DocuSign's stock fell nearly 19% to $75.28. The decline was primarily attributed to the lower-than-expected billings and a downward revision of the full-year billings forecast to between $3.285 billion and $3.339 billion, down from the previous range of $3.3 billion to $3.354 billion.
Analysts:
Analysts expressed mixed reactions. While some maintained neutral ratings, they lowered price targets due to uncertainties surrounding the company's sales strategy changes and broader economic factors.
Josh Baer, analyst at Morgan Stanley, has lowered the price target for DocuSign from $92 to $86 and maintains an “Equal Weight” rating on the stock. The after-hours pressure on the stock was a result of missed revenue expectations in the first quarter and disappointing billings guidance. The latter points to a short-term disconnect between results and key performance indicators, the tone of management, and investor bullishness—described as DocuSign’s “dilemma.” This short-term gap could be due to timing, the analyst added, noting that “patient investors will be rewarded” in this case.
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Dollar Tree (DLTR)
Key Highlights – Q1 FY2025:
Revenue: $4.64 billion, an 11.3% increase year-over-year, exceeding analyst expectations.
Adjusted EPS: $1.26, surpassing the consensus estimate of $1.21.
Same-Store Sales Growth: 5.4%, driven by a 2.5% increase in customer traffic and a 2.8% rise in average ticket size.
Customer Growth: Added 2.6 million new customers in Q1, with notable increases among higher-income households.
Store Expansion: Opened 148 new Dollar Tree stores and converted approximately 500 stores to the Multi-Price 3.0 format, which offers products at various price points beyond the traditional $1.25.
Gross Margin: Improved by 20 basis points to 35.6%, attributed to lower freight costs and improved mark-on, partially offset by increased distribution and markdown costs.
Outlook & Strategic Initiatives:
Q2 Guidance: The company anticipates a 45% to 50% year-over-year decline in adjusted EPS for the second quarter, primarily due to an expected $70 million impact from tariffs and increased SG&A expenses.
Full-Year Guidance: Despite near-term challenges, Dollar Tree raised its full-year adjusted EPS outlook to a range of $5.15 to $5.65, up from the previous guidance, reflecting confidence in mitigating cost pressures and continued operational improvements.
Family Dollar Sale: The company is on track to complete the sale of its Family Dollar segment for $1 billion in the second quarter, aiming to streamline operations and focus on the core Dollar Tree brand.
Market Reaction:
Following the earnings release, Dollar Tree's stock declined approximately 8.4%, closing at $93.85 on June 10, 2025. The decline was attributed to investor concerns over the anticipated short-term profit pressures from tariffs, despite the company's strong first-quarter performance and positive long-term outlook.
Analysts:
BMO Capital analyst Kelly Bania raised the price target for Dollar Tree from $80 to $85 but maintains a “Market Perform” rating. The company showed strong sales momentum in the first quarter, and management raised its EPS forecast due to increased share buybacks. However, additional costs from tariffs and labour pressured Q2 estimates, suggesting that a significant profitability acceleration is planned for the second half of the year. Management also aims to more than offset these extra costs. BMO notes, however, that strategies to mitigate the impact of tariffs remain unclear and could negatively affect merchandise quality in the long term.
Morgan Stanley analyst Simeon Gutman raised the price target from $80 to $96 and maintains an “Equal Weight” rating. He expects continued sales momentum in 2025, driven by multi-price strategies, market share gains, and trade-ins. He tells investors that margins will see a “meaningful” improvement in the second half of 2025, with tariffs being the key wildcard.
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Hewlett Packard Enterprise (HPE)
Key Highlights – Q2 FY2025:
Revenue: $7.63 billion, a 6% increase year-over-year, surpassing analyst expectations of $7.45 billion.
Adjusted EPS: $0.38, exceeding the consensus estimate of $0.33.
Server Revenue: $4.06 billion, up 6% year-over-year, driven by strong demand for AI-optimized servers.
Hybrid Cloud Revenue: $1.45 billion, a 13% increase year-over-year, reflecting growth in HPE's GreenLake platform.
AI Systems Revenue: Over $1 billion, with a backlog of $3.2 billion, indicating robust demand in AI infrastructure.
Annualized Revenue Run Rate (ARR): $2.2 billion, up 46% from the prior-year period.
Operating Margin: 8%, a decline of 150 basis points year-over-year, due to increased investments in AI and cloud initiatives.
Net Loss: $1.05 billion, or $0.82 per share, primarily due to a $1.36 billion non-cash goodwill impairment charge.
Guidance & Strategic Initiatives:
Q3 Revenue Forecast: $8.2–$8.5 billion, above analyst expectations.
Q3 Adjusted EPS Forecast: $0.40–$0.45, in line with analyst estimates.
Full-Year Revenue Growth: Projected at 7%–9% in constant currency.
Full-Year Adjusted EPS: Raised to a range of $1.78–$1.90, up from the previous guidance of $1.70–$1.90.
Strategic Focus: HPE continues to invest in AI and hybrid cloud solutions, with significant orders for AI-optimized servers and a growing pipeline in these areas.
Market Reaction:
Following the earnings release, HPE's stock rose approximately 3% in after-hours trading, reflecting investor confidence in the company's strong performance and positive outlook.
As of June 10, 2025, HPE's stock is trading at $18.31 USD, reflecting a slight increase from the previous close.
Analysts:
Barclays analyst Tim Long has raised the price target for Hewlett Packard Enterprise from $20 to $24 and maintains an “Overweight” rating. The company delivered a positive surprise after two challenging quarters. The analyst notes that revenue from HPE’s artificial intelligence systems came in higher than expected and that margins should improve in the second half of the year as the company manages costs and addresses operational issues.
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Lululemon Athletica (LULU)
Q1 2025 Financial Highlights:
Revenue: $2.4 billion, up 7% year-over-year, surpassing analyst expectations of $2.36 billion.
Earnings Per Share (EPS): $2.60, meeting consensus estimates.
Gross Margin: Improved by 60 basis points to 58.3%, driven by lower product costs and improved markdowns.
Comparable Sales: Increased by 1%; however, same-store sales in the Americas declined by 2%, while international comparable sales rose by 6%.
China Mainland Revenue: Increased by 22% in constant currency, showcasing strong growth in this key market.
Updated Guidance:
Full-Year EPS: Revised to a range of $14.58 to $14.78, down from the previous estimate of $14.95 to $15.15.
Full-Year Revenue: Maintained at $11.15 billion to $11.3 billion.
Q2 EPS: Projected between $2.85 and $2.90, below analysts’ expectations of $3.29.
Strategic Initiatives and Challenges:
Lululemon plans to implement modest price increases on select products and increase discounts to manage the financial strain from new tariffs imposed by the U.S. on goods from countries like Vietnam and China, where it sources a significant portion of its fabrics.
The company is also focusing on product innovation and international expansion to offset challenges in the North American market, where it faces intense competition from trendier and more affordable brands.
Market Reaction:
Despite the solid quarterly performance, Lululemon's stock fell approximately 22% in after-hours trading following the earnings release. The decline was primarily attributed to the company's lowered full-year profit guidance, citing increased tariff costs and cautious consumer spending in key markets like North America and China.
Analysts:
BTIG analyst Janine Stichter lowered the price target for Lululemon Athletica from $420 to $405 but maintained a “Buy” rating. The apparel specialist slightly exceeded expectations in Q1 for revenue and gross margins, but the focus was on the outlook, which was largely lowered to account for additional tariffs. However, the analyst added that the guidance appears conservative, as management does not anticipate significant short-term tariff offsets and is conservatively assuming higher markdowns compared to currently lower year-over-year levels. BTIG believes the market’s reaction is overdone, as the company’s fundamentals remain intact.
Citigroup analyst Paul Lejuez cut the price target from $325 to $270 and maintained a “Neutral” rating. Q1 was disappointing, with total revenue rising only 1%, below the 4% consensus estimate, primarily due to weakness in China. Lululemon’s Q2 revenue guidance was in line with expectations, but tariffs and investments weighed on margins, causing the earnings forecast to fall below consensus. The analyst still sees a balanced risk/reward profile at current levels.
Evercore ISI analyst Michael Binetti lowered the target from $400 to $320 while keeping an “Outperform” rating. He noted that Lululemon added “unnecessary fuel to the bears’ fire” with an undoubtedly disappointing quarter, but believes the market’s reaction was an “overreaction.”
KeyBanc analyst Ashley Owens cut the price target from $400 to $350 and reiterated an “Overweight” rating. The company slightly beat expectations in Q1. While 2025 revenue guidance was reaffirmed, EPS estimates were reduced. KeyBanc is encouraged by the return of product novelty to historical levels and sees potential in new offerings becoming future core categories. Despite adjusting estimates and the price target to reflect the updated outlook and post-market reaction, KeyBanc believes Lululemon’s premium positioning enables it to weather the current macroeconomic environment by selectively raising prices and mitigating tariff impacts.
Stifel analyst Jim Duffy lowered the price target from $353 to $324 and maintained a “Buy” rating. Despite a slow start to 2025 and a “surprising” international slowdown, he believes the long-term growth thesis remains intact. He is “encouraged” by the customer response to innovation in the U.S., while acknowledging the need for faster international momentum in coming quarters.
UBS analyst Jay Sole cut the price target from $330 to $290 and maintained a “Neutral” rating. He sees no reason to expect a significant acceleration in U.S. growth following the Q1 report and projects only a 6% average annual EPS growth rate over the next five years.
Wells Fargo analyst Ike Boruchow lowered the price target from $300 to $270 and kept an “Equal Weight” rating. While hopes for short-term innovation and a possible U.S. stabilization are rising, the analyst said Q1 results showed the opposite. Tariffs were a key factor, but the North American region remains a challenge, prompting the rare full-year guidance cut from Lululemon.
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MongoDB (MDB)
Key Highlights – Q1 FY2026:
Revenue: $549.0 million, a 22% increase year-over-year, surpassing analyst expectations of $528 million.
Adjusted EPS: $1.00, exceeding the consensus estimate of $0.66.
MongoDB Atlas Revenue: Grew 26% year-over-year, accounting for 72% of total revenue.
Customer Growth: Added 2,600 customers, bringing the total to over 57,100—the highest net addition in six years.
Free Cash Flow: Generated $105.9 million, with total cash and equivalents reaching $2.5 billion.
Guidance & Strategic Initiatives:
Q2 Revenue Forecast: $548–$553 million, in line with analyst expectations.
Q2 Adjusted EPS Forecast: $0.62–$0.66, above the consensus estimate of $0.59.
Full-Year Revenue Guidance: Raised to $2.25–$2.29 billion, up from the previous guidance of $2.24–$2.28 billion.
Full-Year Adjusted EPS Guidance: Increased to $2.94–$3.12, up from the prior range of $2.44–$2.62.
Share Repurchase Program: Authorized an additional $800 million, bringing the total buyback authorization to $1 billion.
Market Reaction:
Following the earnings release, MongoDB's stock surged approximately 15%, closing at $231.05 on June 5, 2025. Analysts attributed the rally to the company's strong performance and optimistic outlook, particularly in its Atlas cloud services and AI-driven applications.
As of June 10, 2025, MongoDB's stock is trading at $217.23 USD, reflecting a decrease of approximately 1.3% from the previous close.
Analysts:
Barclays analyst Raimo Lenschow raised the price target for MongoDB from $252 to $270 and maintains an “Overweight” rating. He expects the stock to react positively to the “better-than-expected Q1 results amid low expectations.” Atlas showed its first acceleration in years, signalling better times ahead, and profitability came in well above expectations.
Bank of America analyst Brad Sills raised the price target from $215 to $275 and maintains a “Buy” rating. MongoDB delivered a strong first quarter, with revenue growth driven by the Atlas cloud business, which grew 1.3% quarter over quarter. The results, according to the analyst, place MongoDB on a stronger growth path, supported by stabilising usage trends and easing headwinds from unused credits. He believes Atlas could return to high-20% growth as early as Q2.
Citigroup analyst Tyler Radke said that MongoDB “delivered in Q1” despite a number of concerns. Atlas revenue significantly exceeded expectations, showing improved growth versus the prior quarter. He expects the stock to rise meaningfully and is watching for commentary on usage trends during the quarter, new product rollouts, and the strategic direction under new CFO Mike Berry. Citi maintains a “Buy” rating with a price target of $330.
Guggenheim analyst Howard Ma raised the price target from $235 to $260 and maintains a “Buy” rating. He said the company’s report was “good enough against lukewarm expectations.” He now believes MongoDB can achieve nearly 19% growth with margins over 15% this year, followed by a potential reacceleration in FY2027. Q1 results were viewed as “better than feared.”
What's Coming Up This Week
Tuesday, June 10
Energy Sector Focus:
EIA Short-Term Energy Outlook: Provides forecasts for energy production and consumption, influencing energy markets.
API Weekly Crude Oil Stock Report: Offers insights into U.S. petroleum demand and inventory levels.
Bond Market Activity:
3-Year U.S. Treasury Note Auction: Investor demand here can impact short-term interest rates and market liquidity.
Wednesday, June 11
U.S. Consumer Price Index (CPI) Report: May's CPI data will be released, with expectations of a 2.5% annual increase. This report is crucial for assessing inflation trends and potential Federal Reserve policy actions.
Producer Price Index (PPI) Data: Provides additional insights into inflation at the wholesale level, influencing cost structures for businesses.
Thursday, June 12
U.S. 30-Year Treasury Bond Auction: A $22 billion auction could affect long-term interest rates and investor sentiment regarding government debt.
Ongoing U.S.-China Trade Discussions: Any announcements or progress reports from the London talks could have significant market implications.
Friday, June 13
Market Sentiment and Volatility: Investors will digest the week's economic data and trade developments, potentially leading to increased market volatility.
Disclaimer: This content is for informational and educational purposes only and does not constitute financial advice. It does not consider your personal objectives, financial situation, or needs. You should consider whether the information is appropriate for your circumstances and seek professional advice before making any investment decisions. Investing in stocks carries inherent risks, and the application of any strategy may not eliminate the risk of loss. Market conditions, volatility, and unforeseen events can impact outcomes, and past performance is not indicative of future results.
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