GitLab's lackluster quarterly and fiscal year guidance is overshadowing an earnings beat
Shares of GitLab Inc (NASDAQ:GTLB) are deep in the red this morning, off 10% at $43.68, after software company's disappointing second quarter and full-year guidance overshadowed a first-quarter earnings beat. No fewer than 14 brokerages have chimed in price-target cuts, the steepest coming from JPMorgan Securities to $52 from $58.
Today's bear gap has the software stock eyeing its worst single-session drop since April 3. With a now 22% year-to-date deficit, shares of GTLB remain under the pressure of the overhead 80-day moving average.
Given these technical struggles, keep an eye on analysts. Of the 26 brokerages covering the stock, 23 maintain "buy" or better ratings, with zero "sells" on the books. A shift in sentiment could weigh on the equity going forward.
Options bears are jumping ship. At last check, over 25,000 call and 16,000 put contracts have crossed the tape, each pulling in 25 times the average daily trading volume. Most popular is the weekly 6/13 40-strike put, with the 45-strike call in the same series following close behind.
Now looks like a good time to weigh in on the shares' next moves with options. GTLB's Schaeffer's Volatility Scorecard (SVS) of 87 out of 100 means it tended to exceeded options traders' volatility expectations over the past year.