MongoDB, Inc. (MDB)

Despite bursts of outperformance, small- and mid-cap stocks (SMID) have underperformed large-caps year to date -- as they have over the past five years. But they are edging closer to their large-cap rivals with a year-to-date return of 10%, just two percentage points below the S&P 500. As well, SMIDs may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by trade and tariff issues, fallout from unrest in the Middle East, the Russian invasion of Ukraine, issues in China, or other geopolitical developments. As well, the prices of SMID stocks generally are lower than the prices of large-caps, with the P/E ratio on the Russell 2000 SmallCap Index at 17, compared to a trailing P/E of 25 for the S&P 500. Finally, there are long stretches in the record books when SMID stocks have outperformed large-caps. SMID risks do carry risk, but diversified investors look to have exposure to small- and mid-caps based on the long-term performance record.

Founded in 2007, MongoDB is a vendor of a document-oriented database that accelerates the development processes of new applications. Enterprise customers can choose between the fully managed offering, MongoDB Atlas, or the self-managed version, MongoDB Enterprise Advanced. MongoDB is a popular tool among developers, and its free Community Server has recorded over 500 million downloads since 2009.

The road to 8,000 for the S&P 500 (SPX) took a nasty detour on Wednesday as Treasury bond yields surged. Remember, it's not so much the level of yields that can spook stock investors -- but the velocity of the increase. The yield spike was blamed on a hotter-than-expected S&P Global flash composite PMI report that was the strongest since July 2021. The move in yields from a data point that typically gets little attention was astounding. The 10-year spiked 15 basis points (bps) to 5.1% and the five-year ripped 16 bps to 5%. Both the 10- and the five-year hit their highest levels since mid-2007. The two-year popped 12 bps to 4.9%, its highest level since mid-2024.

MongoDB Inc. provides an advanced, scalable general-purpose database or data management software platform. The MongoDB database is used by enterprises to develop applications that are at the heart of modern enterprise technology. MongoDB uses hybrid open-source and proprietary technology as the basis for its 'freemium' software business model. MongoDB was founded in November 2007 and made its initial public offering at $24 per share on October 19, 2017. About 46% of the company's revenue is generated outside the U.S. Original investors and insiders hold more than 95% of voting control through their supervoting (10 votes per share) Class B shares.