MongoDB (MDB) shares declined 4.94% to $350.20 in after-hours trading, tracking a broader technology sector selloff triggered by AI valuation concerns and geopolitical tensions.
- The market-wide pressure followed Alibaba's "Qwen 3.5" AI announcement and a temporary closure of the Strait of Hormuz, impacting speculative growth stocks.
- Despite the decline, MDB maintains strong fundamentals with Q2 fiscal 2026 revenue growing 24% to $591.4 million and Atlas revenue accelerating by 29%.
- Goldman Sachs remains optimistic, maintaining a $440 fair value estimate which represents a potential 16.3% upside.