GitLab (GTLB) Valuation Check As Analyst Concerns Meet New AI Duo Agent Platform

GitLab (GTLB) is back in focus after analyst commentary highlighted slowing revenue growth, high valuation concerns, and weaker customer retention, just as the company pushes its AI ambitions with the new Duo Agent Platform.

See our latest analysis for GitLab.

GitLab's latest AI push and recent CTO change come against a choppy share performance, with a 6.56% 7 day share price return, a 25.04% 90 day share price decline, and a 43.85% 1 year total shareholder return decline, indicating fading momentum despite pockets of short term interest.

If you are weighing GitLab's AI story against other tech names, this could be a useful moment to see how it compares with high growth tech and AI stocks.

With the shares down over the past year, a value score of 4 out of 100, and the stock trading below one assessment of intrinsic value, you have to ask: is GitLab unloved, or is it already fully pricing in its future AI growth?

Most Popular Narrative: 28.9% Undervalued

With GitLab closing at $36.38 against a narrative fair value of about $51.15, the current setup puts a lot of weight on how its AI plans play out.

GitLab's expansion of AI driven capabilities across its DevSecOps platform, including the upcoming Duo Agent Platform with hybrid usage based monetization, is expected to capture increased demand for automation and developer productivity tools, potentially accelerating revenue growth and expanding margins as high value features command premium pricing and upsell opportunities.

Read the complete narrative.

Curious what sits behind this valuation gap? The narrative focuses on rising revenue, fatter margins, and a rich earnings multiple that only some software names command.

Result: Fair Value of $51.15 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on GitLab holding its ground against intense GitHub and AI tool competition, and avoiding further execution hiccups around customer growth and go to market changes.

Find out about the key risks to this GitLab narrative.

Build Your Own GitLab Narrative

If you look at the numbers and come to a different conclusion, you can stress test every assumption yourself in just a few minutes, then Do it your way

A great starting point for your GitLab research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If GitLab has you thinking harder about where to put your money to work next, do not stop here. Broaden your watchlist with a few targeted screens.

• Spot potential value candidates early by scanning these 874 undervalued stocks based on cash flows that may be trading at prices below what their cash flows suggest.
• Consider the AI theme more thoughtfully by checking out these 24 AI penny stocks that line up with your risk tolerance and growth expectations.
• Explore digital assets through companies linked to blockchain and related services with these 18 cryptocurrency and blockchain stocks.

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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