AAL

Dismal Outlook Overshadows GitLab's Quarterly Win

The company noted the uncertain economic bakdrop

Digital Content Manager
Mar 5, 2024 at 9:59 AM
facebook X logo linkedin


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.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.