Shares of GitLab Inc. (NASDAQ: GTLB) skyrocketed by more than 35% today after the software development platform revealed its plans to introduce a new product that uses artificial intelligence (AI) to boost its revenue.
GitLab is a popular platform used by software developers for their coding work. They’re now adding a cool feature called “ModelOps” to their main platform, known as “DevSecOps.” This feature brings new abilities like suggesting code to help developers write better. GitLab announced that this amazing product will be available later this year for just $9 per month.
Investors were thrilled by this announcement, causing GitLab’s stock to jump an incredible 35.4% in a single day—the biggest increase since the company went public in 2021. By mid-afternoon, the stock had climbed by 31.8% and was trading at $46.66.
In addition, GitLab announced robust financial results for the first quarter of this year. The company reported a staggering 45% surge in revenue, reaching a remarkable $126.9 million. These exceptional figures surpassed both the Refinitiv consensus estimate and GitLab’s earlier forecasts, prompting numerous analysts to revise their price targets for GitLab’s stock in light of this impressive achievement.
As per Refinitiv, a financial data provider, about eighteen analysts strongly recommend buying GitLab shares. These analysts have set a median price target of $53.50.
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.
