31% rally 31% as an AI app for the database company MongoDB’s stock atlas cloud database

MongoDB’s stock has soared about 31% on Wednesday after the database software company said that atlas cloud services are increasing as the Atlas cloud service is built on the platform.

MongoDB will add more than $ 5.2 billion to a market cap of $ 17.5 billion.

The Creating AI app leads the demand for cloud databases such as ATLA, which allows you to quickly search for information by processing a vast amount of unstructured data and quickly search for chatbots, recommendations and search tools.

As the company builds and distributes more AI functions, AI-ready database and related services are increasing. This has been converted to faster profit growth of platforms integrated with major cloud and AI tools.

Luke Yang, an analyst at Morning Star, said, “We are encouraging startups and enterprise customers’ strong market movement promotion thanks to the assignment of artificial intelligence market resources and product improvement.

Analysts also said that in order to focus on enterprise customers, the assignment of sales resources will lead the use of MongoDB’s largest customers. The company has raised its annual adjustment profit forecast from $ 2.94 to $ 3.12 per share from $ 3.64 to $ 3.73 per share. In the fiscal year at the end of January, sales are expected to increase from $ 23 billion to $ 2.22 billion to $ 2.22 billion.

Revenue and profit forecasts were higher than Wall Street estimates.

More than 15 analysts have raised their stock price goals. The average grade of the company is “buying” and the average price target is $ 325.

The stock trades 58.6x of profit estimates compared to 140.91 for snow flakes and 32.85 for Oracle.