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However, the company’s shares have declined 12.7% in price over the past month due to the sell-off of technology stocks last month on rising interest rates. Higher 10-year Treasury yields have been a matter of concern for tech investors because rising interest rates reduce the long-term growth potential of fast-growing technology businesses.
In addition, the industry’s strong growth prospects are fostering fierce competition among existing and new players. Investors’ optimism surrounding the industry’s growth has led the stock of several industry participants, including MDB, to hit valuations that are not in sync with their current or projected financials. Furthermore, with U.S. Treasury yields rising ahead of the Federal Reserve’s December policy meeting, MDB’s shares may suffer in the near term.
