Core Viewpoint - GitLab is positioned for a potential rebound in 2026 despite a significant drop in share price, attributed to investor concerns over its SMB segment and perceived threats from AI [1][14]. Financial Performance - GitLab reported a 25% year-over-year revenue increase for fiscal Q3 2026, reaching $244.4 million, surpassing its forecast [6]. - Subscription revenue rose by 27% to $223.3 million, while license revenue increased by 1% to $21.1 million [7]. - The company achieved an adjusted operating income of $43.7 million, a 69% increase, with operating margins improving to 17.9% from 13.2% [10]. - Adjusted free cash flow was $27.2 million, up from $9.7 million a year ago, with over $1.2 billion in cash and short-term investments and no debt [11]. Customer Base and Market Dynamics - GitLab's dollar-based net retention rate is 119%, indicating existing customers are increasing their spending [8]. - The number of customers generating over $100,000 in annual recurring revenue grew by 23% to 1,405, with the SMB segment contributing only 8% of total ARR [9]. Future Outlook - GitLab raised its full-year fiscal 2026 revenue forecast to between $946 million and $947 million, and adjusted EPS guidance to $0.95 to $0.96 [11]. - For fiscal Q4, revenue is projected to be between $251 million and $252 million, reflecting approximately 19% growth [12]. Strategic Initiatives - The company is transitioning to a comprehensive end-to-end software development lifecycle platform, with the Duo Agent platform set to enhance developer productivity through AI [5][4]. - GitLab is shifting to a hybrid seat plus usage-based business model, which is expected to drive long-term growth [16]. Valuation - GitLab's stock is currently trading at a price-to-sales multiple of 5.5 times fiscal year 2027 estimates, and an enterprise value-to-sales ratio of about 4.5 times, indicating it is undervalued given its strong revenue growth and high gross margins [17].

Group 1: Palantir Technologies - Palantir Technologies has adopted a unique approach to artificial intelligence (AI), focusing on making AI more actionable through its data gathering and analytics foundation [2][3] - The company's AI platform (AIP) connects data to real assets and processes, functioning as an orchestration layer for AI, which has gained traction in the U.S. commercial sector [3] - In the last quarter, U.S. commercial revenue surged by 71%, overall revenue increased by 39%, and commercial deal value rose by 127%, indicating strong growth potential [4] Group 2: IonQ - IonQ is a leader in quantum computing, developing real systems with low error rates and a clear path to fault tolerance, which is essential for practical applications [6] - The company collaborates with major firms like Nvidia and AstraZeneca and has opened a large facility for manufacturing quantum computers, supported by nearly $700 million in cash and no debt [7] - If quantum computing reaches a significant breakthrough, IonQ could emerge as a major player in the tech industry [8] Group 3: SoundHound AI - SoundHound AI specializes in AI voice technology and aims to create voice-first AI agents capable of understanding and acting on complex requests [10][11] - The acquisition of Amelia has enhanced its capabilities in conversational intelligence, allowing it to serve enterprise customers in various sectors [11] - The potential market for AI-powered voice agents is vast, and SoundHound's unique approach positions it well for future growth [12] Group 4: AppLovin - AppLovin has transformed into a profitable growth company due to its Axon 2 AI ad engine, which has significantly boosted advertising revenue and gross margins [13] - The company is expanding its AI capabilities beyond gaming apps into e-commerce, which could lead to substantial business growth [14] - Despite scrutiny from short sellers and concerns over alleged ties to China, AppLovin's financial performance indicates strong potential for upside [15] Group 5: GitLab - GitLab is positioning itself as a key platform for AI-driven software development, countering the narrative that AI will diminish the need for coders [16] - The recent GitLab 18 release introduced over 30 new features, including the Duo Agent platform, which automates much of the software development lifecycle [17] - The company may shift its pricing model to consumption-based, reflecting the added value of its platform and opening new markets beyond traditional developers [18][19]