MongoDB (NASDAQ:MDB) received a significant upgrade following impressive Q2 earnings that delivered a 49% EPS surprise, suggesting the company is successfully positioning itself as a leader in AI applications. Similarly, Marriott International (NASDAQ:MAR) earned an upgrade as its valuation became more attractive despite economic headwinds.
On the downside, both Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA) faced downgrades, with analysts expressing concerns about unsustainable margins, rising competition, and execution challenges in emerging business segments like robotics and autonomous driving.
Upgrades
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MongoDB, Inc. (NASDAQ:MDB): Upgrade to Speculative Buy by Star Investments. The analyst cites MongoDB’s impressive Q2 FY26 earnings with a 49.25% EPS surprise and revenue growth of 24% year-over-year, alongside its strategic positioning in the AI database market.
“MongoDB is emerging as a standard for AI applications. Over the last few quarters, we’ve seen a strength in our self-serve channel, driven in part by AI native startups choosing Atlas as the foundation for their applications… Across startups and increasingly enterprises, our unified platform is resonating strongly… People who invest in MongoDB may still have significant upside, as recent earnings reports indicate that the company’s strategy is working and it may have a long growth runway.”
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Marriott International, Inc. (NASDAQ:MAR): Upgrade to Buy by Mark Dockray. Despite softer domestic demand affecting RevPAR growth, the analyst notes that international performance remains robust while the company’s valuation has become more attractive.
“I do think these shares look better value today. The combination of a lower stock price and solid earnings growth has seen Marriott’s P/E retreat back into the mid-20s area, offering investors a better chance of realizing reasonable investment returns. Evidence of softening demand in the U.S. is a risk to consider, but for the long-term investor, I would be inclined to see this as an opportunity.”
Downgrades
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Nvidia Corporation (NASDAQ:NVDA): Downgrade to Strong Sell by Trapping Value. The analyst points to unsustainable gross margins in the 73%-75% range, peaked data center growth rates, and rising competition from Broadcom’s $10B AI chip deal.
“Broadcom’s latest deal has fueled speculation that OpenAI is the unnamed customer, following a Financial Times report that the ChatGPT maker is working with Broadcom to develop its own custom AI chips… The move by OpenAI is a desperate attempt to rein in costs as its losses mount faster than revenues. Whatever else this results in, rest assured margins will fall across the chip board… NVDA’s gross margins in the 73%-75% range are unsustainable. Data Center growth rates have peaked and that is all there is to the NVDA story (88% of revenues).”
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Tesla, Inc. (NASDAQ:TSLA): Downgrade to Hold by Dhierin Bechai. The analyst cites the stock reaching his price target, downward revisions in earnings expectations, and execution lags in robotics and autonomous driving technology.
“Tesla, Inc. has gained 18.9% since my last report, outperforming the S&P 500’s 17.7% gain and supporting my Buy rating… While these opportunities could transform Tesla into a diversified technology leader, investors should also consider how current revenue streams are performing… Given TSLA stock’s valuation and reduced growth outlook, I now rate Tesla as Hold, as optimism exceeds near-term reality.”