Stocks closed at new record levels on Friday. Continued optimism about the progress of the COVID-19 vaccine and expectations for further stimulus measures were the driving force behind Friday's rally in US indices.
The and posted a second consecutive week of gains, with 1% and 1.7% for the week respectively. The tech-heavy added 2.1% in the same time frame, finishing the third straight week in green.
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New vaccine developments and updates on coronavirus infection rates and social distance restrictions will continue to be in the spotlight in the coming days
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Below, we break down one stock that a pop should see with gains ahead and another on track for additional losses as fears of delisting outweigh.
MongoDB (NASDAQ :), the most widely used open-source database software platform, is thriving this year.
The New York-based company has seen demand for its cloud-based data platform rise as more people work from home.
MongoDB's website describes the broad reach of its product and says:
"MongoDB has more than 20,200 customers in more than 100 countries. The MongoDB database platform has been downloaded more than 125 million times and there are over a million registrations from MongoDB University."
Shares more than doubled in 2020, up 111%, surpassing the 14.5% gain of the benchmark S&P 500 over the same period
MDB stock closed at $ 277.63 Friday, not far from its all-time high of $ 289.79 on Nov. 30, valuing the database software company at approximately $ 16.1 billion.
The revenues and revenues of MDB easily in the second quarter. The company is expected to publish its financial results on Tuesday, December 8 following the close.
By consensus estimates, the database software specialist should record a loss of $ 0.45 per share in the third quarter, rising to a loss of $ 0.26 per share in the same period a year earlier. Revenue is expected to grow nearly 27% year-on-year to a record $ 138.8 million, driven by high demand for Atlas cloud database subscriptions.
As such, Wall Street will closely monitor revenue growth rates for the Atlas platform, which rose 66% year-on-year in the previous quarter. The offering now accounts for more than 44% of the company's sales.
In addition to earnings per share and revenue figures, market players will also focus on MongoDB's update regarding the outlook for the remainder of the year and beyond, given the unprecedented nature of the ongoing COVID-19 pandemic.
We expect MongoDB, which has regularly surpassed Wall Street estimates since its IPO in October 2017, will release another impressive quarter as there is still demand for its cloud-based, open-source database offering.
Stock To Dump: Nio
Investors may want to stay away from Chinese electric vehicle manufacturer Nio (NYSE 🙂 this week pending further developments after the US House of Deputies has passed a law that could result in China-based companies deleting their shares from US stock exchanges.
Under the Holding Foreign Companies Accountable Act, passed in the House of Representatives last week, China-based companies listed on US stock exchanges would have to undergo annual audits reviewed by US regulators or forced their listing to be deleted.
The measure, which could soon be signed by President Donald Trump, would require the Public Company Accounting Oversight Board (PCAOB) to oversee audits of Chinese companies' financial records.
That does not bode well for Nio, who stated in his 2019 annual report:
"Because our auditors are based in China, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the [People’s Republic of China] authorities, our auditors are not currently inspected by the PCAOB."
Taking this into account, the electric vehicle manufacturer's stock is likely to remain vulnerable to sharp swings in the coming days.
Shares of the Shanghai, China-based EV company are down nearly 25% since they hit an all-time high of $ 57.20 on Nov. 24.
NIO, which is still up a staggering 1,023% to date, closed at $ 43.04 on Friday, giving it a market cap of $ 51 billion.
The China-based electric vehicle manufacturer has seen strong growth in car deliveries in 2020, with sales more than doubling from 2019. So far, the company has delivered 36,721 electric vehicles this year, making 111 , 1% more than the same time last year.
