Shares of MongoDB Inc. (NASDAQ:MDB) were rising this afternoon even after an analyst lowered his price target for the tech stock today.
MongoDB’s shares were up 4% as of 3:16 p.m. EDT.
Citi analyst Tyler Radke lowered his price target for MongoDB’s stock to $445 today, down from his previous price target of $500, but Radke maintained his buy rating for the company’s stock.
Investors tend to react negatively when an analyst lowers their price target, but MongoDB’s share price was rising modestly today.
That may have more to do with the fact that some investors are beginning to come back to the tech sector after several months of shunning tech stocks. MongoDB’s stock is down about 25% year to date as investors have looked beyond the tech stock boom that occurred over the past 12 months.
Many investors focused their attention on the technology sector for growth during the pandemic, but as the economy is starting to open back up, some investors have sold off their tech positions.
Today’s share price jump is likely a small shift in investor sentiment back toward technology stocks, but MongoDB investors should probably prepare for some more volatility. Investors are still trying to figure out where to put their money after a strong year in tech stock gains, and that means that MongoDB’s share price may see some dips and pops in the short term.
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