GTLB Stock Down 18% in a Month: Hold Tight or Time to Let Go?
From Nasdaq: 2025-03-07 12:53:00
Gitlab’s stock, GTLB, has dropped 18.1% in the last month, underperforming the Computer & Technology sector. However, after reporting Q4 fiscal 2025 results, the stock gained 3.6%. GitLab’s strong DevSecOps platform and partnerships with Google Cloud, AWS, and Zscaler are driving customer adoption and expanding relationships.
In Q4 fiscal 2025, GitLab saw an increase in customers with over $5,000 and $100,000 in Annual Recurring Revenues (ARR), showcasing its ability to attract and retain large enterprise clients. The company’s partnerships with leading cloud platforms and the introduction of AI-powered solutions are enhancing its footprint among enterprise customers.
GitLab is leveraging AI to enhance its portfolio with tools like GitLab Duo Pro and Duo Enterprise, improving developer productivity and adoption. The company’s partnerships with AWS, Google Cloud, and Zscaler are driving innovation and enhancing security throughout the development lifecycle.
For Q1 fiscal 2026, GitLab expects revenues between $212 million and $213 million, reflecting a 25-26% year-over-year growth. Non-GAAP EPS is expected to be between 14 cents and 15 cents, showing significant growth. Despite facing tough competition, GitLab’s strong growth prospects and market leadership in DevSecOps are driving its positive outlook.
While GitLab faces competition in the DevSecOps and AI space, its growth potential is promising. However, with a stretched valuation and near-term profitability concerns, investors should approach GTLB stock cautiously. With a Zacks Rank #4 (Sell) and unattractive Growth Score, investors should carefully evaluate their investment decisions.
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