MongoDB, Inc. (MDB) Is Not An AI Stock, Asserts Jim Cramer

We recently published Jim Cramer Said AI Is A “Souped-Up Google” As He Discussed These 11 Stocks. MongoDB, Inc. (NASDAQ:MDB) is one of the stocks Jim Cramer recently discussed.

MongoDB, Inc. (NASDAQ:MDB) is a software company that enables businesses to manipulate and work with data. Its shares have gained a whopping 40% over the past five days after its second-quarter revenue, earnings, and subscription revenue of $591 million, $1, and $572 million all beat analyst estimates. Cramer discussed the stock with his co-host David Faber:

“And the reason is we are either going to make a lot of money with AI, right, or Dev, Dev Ittycheria, from MongoDB, says listen no one’s going to make any money.

“The reason I’m mentioning Dev, I’m mentioning Dev is because his stock is up 70 points. . .

“MongoDB is not AI. It’s software that you can use to be able to build an AI program on, but it’s a software company so we’re seeing enterprise software have its day in the sun, including that Wall Street Journal article. Enjoy it while it lasts.

“[After Faber commented that it was worth mentioning that MDB’s stock based compensation added to non-GAAP EPS meant that the firm lost 58 cents] It absolutely is and remember this is this AI versus software, but you need, you get MongoDB software it’s better, you’re able to write programs. So let’s say you have a business, and you’re using Shopify, okay, and it shows you that you have lots of customers in California and lots of customers in Texas, not a lot of customers in Pennsylvania. You don’t know what to do with that. You run it through MongoDB and it tells you that, well that pattern is because people like potato chips in Northern California. It lets you interrogate the data. And that’s a terrific thing, but it is not AI.”

While we acknowledge the risk and potential of MDB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MDB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.