Shares of MongoDB Inc. (MDB) tumbled 12% in afternoon trade Thursday, after Amazon.com Inc.'s (AMZN) Amazon Web Services (AWS) announced a new service--DocumentDB--that competes with the database platform company's service. AWS said DocumentDB will support MongoDB workloads. "Developers can use the same MongoDB application code, drivers, and tools as they do today to run, manage, and scale workloads on Amazon DocumentDB and enjoy improved performance, scalability, and availability without having to worry about managing the underlying infrastructure," AWS said in a statement late Wednesday. D.A. Davidson analyst Rishi Jaluria reiterated his neutral rating on MongoDB, saying that while some of the competitive concerns may be "overblown," he views the stock as "fully valued." Meanwhile, Instinet analyst Christopher Eberle reiterated his reduce rating. He said MongoDB's commitment to implementing license changes for MongoDB Community, which he believes won't be approved by the Open Source Initiative (OSI), "may force developers to us competitive solutions." Eberle said that while MongoDB had no choice to implement changes, in response to alleged abuse by cloud service providers, "the necessary changes also come with significant risk." MongoDB's stock has still rallied 18% over the past three months and 163% over the past 12 months, while the S&P 500 has lost 7.0% the past three months and slipped 5.7% the past year.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 10, 2019 14:23 ET (19:23 GMT)
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