Software Stock Eyes Worst Day Since April After Earnings

Core Points - GitLab Inc's shares are down 10% to $43.68 following disappointing second quarter and full-year guidance, despite a first-quarter earnings beat [1] - 14 brokerages have reduced their price targets, with JPMorgan Securities cutting the target from $58 to $52, indicating a bearish sentiment [1] - The stock is experiencing its worst single-session drop since April 3, with a year-to-date deficit of 22% and struggling against the overhead 80-day moving average [2] Analyst Sentiment - Of the 26 brokerages covering GitLab, 23 maintain "buy" or better ratings, with no "sells" reported, suggesting a generally positive outlook despite recent declines [2] - A potential shift in analyst sentiment could negatively impact the stock moving forward [2] Options Activity - There is significant options activity, with over 25,000 call and 16,000 put contracts traded, indicating heightened interest and volatility [3] - The most popular options are the weekly 6/13 40-strike put and the 45-strike call, reflecting traders' strategies in response to the stock's performance [3] Volatility Assessment - GitLab's Schaeffer's Volatility Scorecard (SVS) is 87 out of 100, indicating that the stock has historically exceeded options traders' volatility expectations over the past year [4]