Why GitLab Stock Plummeted 24.8% Last Month and Has Kept Falling in March

By Keith Noonan – Mar 9, 2026 at 7:33PM ESTKey PointsGitLab stock fell in February as investors reduced exposure to software companies in response to AI-disruption concerns. The company's share price has kept moving lower in March amid big market swings connected to geopolitical and macroeconomic outlooks. GitLab (GTLB 1.36%) stock got hit with a precipitous sell-off in February. The company's share price sank 24.8% in the period's trading. The S&P 500 declined 0.9% over the stretch, and the Nasdaq Composite's level fell by 3.4%. There wasn't any major business-specific news that pushed GitLab's valuation lower last month, but the stock fell in conjunction with a broader-market pivot away from software stocks. Some hotter-than-anticipated inflation data at the end of the month also dragged the company's share price lower. Image source: Getty Images. GitLab stock sank amid bearish software pivot and macro concerns Bearish pressure for software stocks mounted in February as investors reacted to the possibility that advances in artificial-intelligence (AI) technologies could render many existing business models obsolete. Amid the more cautious outlook for software stocks, multiple investment firms lowered their one-year price target for GitLab. GitLab stock also saw a pullback at the end of the month after the Bureau of Labor Statistics (BLS) published its producer-price-index (PPI) report for January. While economists had forecasted inflation of 0.3% for the period, the price index data actually wound up showing a 0.8% increase for the period. ExpandNASDAQ: GTLBGitLabToday's Change(-1.36%) $-0.34Current Price$24.57Key Data PointsMarket Cap$4.1BDay's Range$23.95 - $24.8252wk Range$23.10 - $54.80Volume202KAvg Vol5.5MGross Margin87.38% Why GitLab stock has kept falling in March GitLab published its fourth quarter results after the market closed on March 3 and posted sales and earnings that beat Wall Street's targets. The company reported a non-GAAP (adjusted) profit of $0.30 per share on sales of $260.4 million, topping the average analyst estimate's call for a per-share profit of $0.23 on sales of $252.22 million. Despite the Q4 beats, the company's forward guidance wasn't enough to support gains for the stock. The company's share price is down 6.5% in the month so far. For the current quarter, GitLab is guiding for sales to be between $253 million and $255 million. The average analyst estimate had called for the business to post sales of $256.69 million. The company expects adjusted earnings per share for the period to be between $0.20 and $0.21 -- roughly in line with the average Wall Street analyst estimate's target for adjusted earnings of $0.20 per share. Looking ahead to the full-year period, management is targeting sales between $1.099 and $1.118 billion -- falling short of the average analyst estimate's call for revenue of $1.13 billion. Adjusted earnings for the year are projected to be between $0.76 and $0.80, which came in well below the average Wall Street target for earnings of $1.03 per share. In addition to the weaker-than-expected forward guidance, GitLab stock has lost ground this month as investors reacted to geopolitical and macroeconomic factors. The U.S. and Israel's war with Iran has injected a new source of volatility into the market. BLS data showing that U.S. payroll figures fell by 92,000 in February when economists had only forecasted a reduction of 50,000 jobs has also added to pressures. Along with GitLab's softer-than-anticipated forward guidance, these dynamics have raised concerns about the company's near-term growth outlook. Read NextMar 9, 2026 •By Geoffrey SeilerIs Now the Time to Buy Beaten-Up GitLab?Mar 4, 2026 •By Anders BylundWhy GitLab Stock Plunged 13.5% This MorningJan 30, 2026 •By Geoffrey SeilerIs This AI Stock About to Prove All the Bears Wrong?Jan 20, 2026 •By Jeremy BowmanWhy GitLab Stock Lost 33% in 2025Dec 7, 2025 •By Geoffrey SeilerGitLab Shares Plunge.

Why It May Be Time to Load Up on the Stock Ahead of the New Year.Dec 3, 2025 •By Rich SmithWhy GitLab Stock Crashed TodayAbout the AuthorKeith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.TMFNoonsStocks MentionedGitLabNASDAQ: GTLB$24.57(-1.36%)-$0.34S&P 500 IndexSNPINDEX: ^GSPC$6,795.99(+0.83%)+$55.97NASDAQ Composite IndexNASDAQINDEX: ^IXIC$22,695.95(+1.38%)+$308.27*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.