Dismal Outlook Overshadows GitLab's Quarterly Win

The company noted the uncertain economic bakdrop

Digital Content Manager
Mar 5, 2024 at 9:59 AM
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A weaker-than-expected earnings and revenue outlook for 2025 is weighing on GitLab Inc (NASDAQ:GTLB) stock. While the software name beat top- and bottom-line estimates for the fourth quarter, its fiscal first-quarter profit outlook also came short of expectation due to an uncertain economic backdrop that has spurred cautious consumer spending. At last check, GTLB is down 12% at $65.56.

The security attracted three price-target cuts, including one from D.A. Davidson to $65 from $75. Meanwhile, Bernstein raised its price objective to $76. Of the 20 analysts in coverage, 14 still call GTLB a "buy" or better. More price-target cuts or downgrades could pressure shares even lower.

Short-term options traders are staunchly bullish, per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.43, which ranks higher than just 1% of readings from the last 12 months. A sentiment shift after today's report could generate headwinds for GitLab stock going forward.

The security is today gapping below several levels of support, including the $69 level and the 60-day moving average. GTLB could also mark its worst single-day percentage drop since March 2023, as it pivots lower from its Feb. 9, two-year high of $78.52, and chips away at is 45.5% year-over-year lead.

 

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