GitLab (GTLB) Teams With AWS on Compliance—Will Dedicated Cloud Bolster Its Competitive Moat?

• GitLab Inc. recently announced a three-year strategic collaboration agreement with Amazon Web Services to widen access to GitLab Dedicated, its single-tenant, cloud-hosted solution tailored for organizations with demanding compliance requirements in regulated industries and the public sector.
• This agreement allows organizations to deploy GitLab Dedicated within their preferred AWS Regions, reducing infrastructure burden while consolidating development and security tools on a unified platform.
• We’ll examine how the AWS collaboration and GitLab Dedicated’s compliance focus could influence the company’s long-term investment narrative.

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GitLab Investment Narrative Recap

To own GitLab, you need to believe in its potential to become a leading unified DevSecOps platform, particularly as enterprises demand greater compliance and security in regulated sectors. The recent AWS collaboration should strengthen GitLab Dedicated's appeal among compliance-focused clients, but competition, especially from major tech players entering code generation, remains the biggest risk, while delays in realizing revenue from new offerings could still limit near-term performance.

Among recent announcements, the launch of GitLab 18 with AI-powered security and compliance enhancements stands out. This directly complements GitLab Dedicated’s focus and supports the company’s thesis that innovative tools for regulated industries may drive stronger customer retention and growth, while tying closely to its evolving product and partnerships roadmap.

However, investors should also be aware that rising competition in the code generation market presents a challenge to GitLab’s revenue momentum and...

Read the full narrative on GitLab (it's free!)

GitLab's narrative projects $1.4 billion revenue and $194.2 million earnings by 2028. This requires 21.7% yearly revenue growth and an earnings increase of $181.2 million from current earnings of $13.0 million.

Uncover how GitLab's forecasts yield a $63.04 fair value, a 42% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members produced 21 individual fair value estimates for GitLab, ranging widely from US$27.92 to US$150. The ongoing battle for market share among AI-enabled development tools highlights why perspectives about GitLab’s upside can differ so much, consider the implications for your own research.

Explore 21 other fair value estimates on GitLab - why the stock might be worth 37% less than the current price!

Build Your Own GitLab Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your GitLab research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free GitLab research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GitLab's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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