GitLab stock has nearly doubled since bottoming in May and reporting strong Q1 FY2023 results on June 6th. Analysts followed through with Buy ratings and increased price targets. The stock has been on a downward trajectory since the IPO in October 2021 and is still more than 50% below their ATH price in November, a trait shared with many other software infrastructure plays. As we are three quarters into their life as a public company, I wanted to dig into the story and begin considering it for an investment. Personally, I have used the product with a previous engineering team and was impressed by the ease of use and integration of multiple steps in the software development lifecycle. Since then, GitLab has expanded their offering and are setting a broader vision to become the “One DevOps Platform”.
As I typically do, my focus will be on the product offering, platform roadmap, market position and competitive landscape. For a great summary of the financial drivers and some technical analysis, I recommend checking out this article from Cestrian Capital Research (who is also a sponsor). It provides a nice balance to my coverage for investors considering a position.
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