GitLab’s results matched analyst estimates, but its growth rate slowed. Some investors view AI as a threat rather than an opportunity. The stock is at its cheapest ever, with a price-to-sales ratio of 6. Shares of GitLab (NASDAQ: GTLB) fell 33% in 2025, failing to rebound like other tech stocks. Concerns about AI strategy and customer retention linger.

GitLab started 2025 strong but faced a market sell-off due to trade war fears. Fourth-quarter earnings briefly boosted the stock, but fears persisted. Revenue rose 25% to $244.4 million in Q3, but growth rate slowdown and AI concerns weighed on investor sentiment. Stock slumped to a 52-week low by year-end.

Following a difficult 2025, GitLab now trades at a price-to-sales ratio of 6, significantly cheaper than before. Investors await proof of thriving in the AI era, maintaining growth, and generating profit. Doubts persist, making it a challenging investment choice. The Motley Fool does not recommend GitLab stock among its top 10 picks.

Read more at Nasdaq: Why GitLab Stock Lost 33% in 2025