GitLab: Share Price Erosion Has Little To Do With Strong Fundamentals
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Gary Alexander32.8K FollowersFollow5ShareSavePlay(12min)CommentsSummaryGitLab is still a 'Buy,' as AI fears are overblown, with the stock trading at an inexplicably low valuation despite robust fundamentals.GTLB delivers 25% y/y revenue growth, beats Q3 estimates, and guides above consensus while maintaining high-teens operating margins and Rule of 40 discipline.Federal sector headwinds and SMB softness are near-term risks, but enterprise customer growth and a strong sales pipeline support the long-term thesis.With a debt-free balance sheet, $1.2 billion net cash, and trading at 4.6x FY27 EV/revenue, GTLB offers a rare "growth at a reasonable price" opportunity.
Getty Images Amid a sky-high stock market as we enter 2026, investors have a conundrum to face in the markets: AI is the primary catalyst that has driven gains this year. It’s a relatively new force in revolutionizing the workplace and replacingThis article was written byGary Alexander32.8K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have a beneficial long position in the shares of GTLB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You