Core Viewpoint - GitLab (GTLB) shares are currently considered overvalued with a Value Score of F, trading at a forward 12-month price/sales (P/S) ratio of 15.69X, significantly higher than its median of 10.72X and the sector's average of 6.48X [1][4]. Year-to-Date Performance - Year-to-date, GitLab shares have increased by 29.8%, outperforming the broader sector's growth of 1.8% and the Zacks Internet – Software industry's return of 16.9% [4]. - GitLab has outperformed Microsoft (MSFT), which has seen a decline of 1.9% in the same period [4]. Technical Indicators - GitLab is currently trading above both the 50-day and 200-day moving averages, indicating a bullish trend [7]. Partnerships and Innovations - GitLab is benefiting from partnerships with major cloud platforms like Google Cloud and Amazon Web Services (AWS), which are enhancing its reach among large enterprise customers [10]. - A recent collaboration with AWS aims to launch an AI-powered solution to improve software development and security, integrating GitLab Duo with Amazon Q's autonomous agents [10][12]. Financial Outlook - For Q4 of fiscal 2025, GitLab anticipates revenues between $205 million and $206 million, reflecting a year-over-year growth of 25-26% [13]. - The Zacks Consensus Estimate for Q4 revenues is $205.64 million, indicating a growth of 25.56% year-over-year, with earnings expected at 23 cents per share, a 53.33% increase [14]. - For fiscal 2025, GitLab expects revenues between $753 million and $754 million, indicating approximately 30% year-over-year growth, with earnings projected at 63 cents per share, a 215% increase [13][15]. Competitive Landscape - The rapid evolution of AI poses challenges for GitLab, necessitating continuous integration of autonomous AI features to maintain its competitive edge [16]. - The emergence of DeepSeek Coder, a Chinese competitor, highlights the need for GitLab to differentiate itself in a crowded market [17]. Investment Considerations - Despite strong growth and solid partnerships, GitLab's high valuation and rising competition present challenges, leading to a Zacks Rank 3 (Hold) [18][19].

Core Insights - GitLab Inc. is recognized as a leading AI-powered DevSecOps platform for software development, with over 40 million registered users and more than 50% of Fortune 100 companies utilizing its services [1]. Company Overview - GitLab Inc. operates in the software development sector, focusing on integrating security into the development process through its DevSecOps platform [1]. - The company has a significant user base, indicating strong market penetration and potential for growth [1]. Market Position - The presence of over 50% of Fortune 100 companies as users highlights GitLab's competitive advantage and credibility in the industry [1].

Company Overview - GitLab Inc. (GTLB) shares increased by 12.3% to close at $72.75, with a notable trading volume compared to normal sessions, and a total gain of 14.7% over the past four weeks [1] - The company is experiencing growth due to an expanding clientele and strong adoption of its AI-powered DevSecOps platform [1] Earnings Expectations - GitLab is expected to report quarterly earnings of $0.23 per share, reflecting a year-over-year increase of 53.3% [2] - Revenue projections stand at $205.64 million, which is a 25.6% increase from the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for GitLab has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - GitLab holds a Zacks Rank of 2 (Buy), suggesting positive market sentiment [3] Industry Comparison - GitLab is part of the Zacks Internet - Software industry, where another company, Zoom Communications (ZM), saw an 8.1% increase in its stock price, closing at $88.64 [3] - Zoom's consensus EPS estimate has also remained unchanged at $1.31, representing a 7.8% decrease from the previous year [4]

GitLab and Industry Trends - GitLab is a DevSecOps platform that assists developers in building, testing, and deploying software [1] - The company benefits from secular tailwinds, including the adoption of generative Artificial Intelligence (AI) by companies [1] Author Background and Disclosure - The author has a background in engineering and a strong interest in tech stocks, which influences their investment focus [1] - The author has no stock, option, or derivative positions in GitLab or any other mentioned companies, and no plans to initiate such positions within the next 72 hours [1]

Investment Opportunity - GitLab (NASDAQ: GTLB) presents an attractive investment opportunity due to its potential to benefit from the AI industry boom [1] - The company's new AI solutions and growth strategy are key drivers of its future success [1] Analyst's Background - The analyst has over 7 years of experience in the buy-side, with a focus on fundamental bottom-up analysis and quantitative modeling [1] - The analyst specializes in identifying perception gaps to capitalize on over-pessimism and excessive exuberance [1]

AI Investment Opportunities - Stocks with market capitalizations under $10 billion offer significant growth potential if their AI-driven businesses succeed [1] - SoundHound AI and GitLab are two mid-cap stocks showing early success in AI, making them potential candidates for investment in 2025 [2] Company Overview - SoundHound operates a voice AI platform called Houndify, which uses speech-to-meaning and deep-meaning-understanding technologies to enable natural voice interactions [4] - GitLab provides a DevSecOps platform with AI-powered tools for secure software development, including code suggestions and automation [5] Revenue Growth - SoundHound's revenue grew by 89% year-over-year in fiscal 2025 Q3, reaching $25.1 million, partly due to its acquisition of Amelia [6] - GitLab's revenue grew by 31% to $196 million in the same quarter, maintaining a consistent growth rate of 30%-40% over the past six quarters [6] Gross Margins - SoundHound's gross margins were 49% in the last quarter, while GitLab's gross margins were significantly higher at 89% [7] - Higher gross margins for GitLab indicate a stronger ability to convert revenue into profits compared to SoundHound [7] Future Opportunities - SoundHound aims to become an AI commerce voice platform, addressing complex interactions across multiple industries, such as healthcare and banking [9] - GitLab's growth is driven by its GitLab Duo AI add-on and the adoption of its higher-tier platform Ultimate, which now accounts for 48% of its customer base [8] Competitive Landscape - SoundHound faces strong competition from companies like Salesforce and Microsoft, which have developed advanced AI voice and customer service solutions [10] - GitLab's GitLab Dedicated solution, offering data isolation and regional data residency, has gained traction, further solidifying its market position [8] Valuation - GitLab trades at a price-to-sales (P/S) multiple of 9.9 times 2025 analyst estimates, making it cheaper than SoundHound, which trades at over 23.5 times [12] - GitLab's superior gross margins and established business model make it a more attractive investment compared to SoundHound [13]

Cathie Wood has purchased over 1 million shares of software stock GitLab over the last few weeks.Cathie Wood is the CEO and chief investment officer of Ark Invest. Over the last several years, she has earned a reputation for making overly bullish calls on companies that may typically lack the full attention of the rest of Wall Street.Another aspect of Wood's investment prowess that is quite uncommon is that she has Ark publish its trading activity on a daily basis. With this in mind, it's never a question o ...

Market Outlook - Investors face tough choices in 2025 due to rising valuations and a potentially correction-prone market [1] - The field of buyable stocks is narrow, indicating limited opportunities for growth exposure [1] Analyst Background - Gary Alexander has combined experience covering technology companies on Wall Street and working in Silicon Valley [1] - He serves as an outside adviser to several seed-round startups, providing exposure to industry-shaping themes [1] - He has been a regular contributor on Seeking Alpha since 2017 and is quoted in many web publications [1] - His articles are syndicated to company pages in popular trading apps like Robinhood [1]

GitLab (GTLB) shares have jumped 20.6% in the trailing six-month period, outperforming the Zacks Computer & Technology sector’s return of 2.8% and the Zacks Internet Software industry’s appreciation of 12.5%.The outperformance can be attributed to GTLB’s expanding clientele and solid adoption of its AI-powered DevSecOps platform.GTLB outperformed its competitor in the DevOps industry, including Microsoft (MSFT) , which is also making strong efforts through its acquisition of GitHub and continued advancement ...

In this articleGTLBPavlo Gonchar | Lightrocket | Getty ImagesAmid concerns over elevated valuations in the U.S. stock market, there are several stocks that continue to look attractive based on the future growth potential they promise.To pick such stocks, investors can track the recommendations of Wall Street experts, who perform in-depth analysis to offer useful insights about a company's strengths and growth opportunities.Here are three stocks favored by the Street's top pros, according to TipRanks, a plat ...