Alphabet Backed GitLab Stock Soars On Wednesday - What's Going On?

Cloud software company GitLab Inc GTLB is exploring a potential sale after receiving acquisition interest, according to sources familiar with the matter, according to a Reuters report.

Google parent Alphabet Inc GOOG GOOGL holds a 22.2% voting stake in GitLab through its venture capital arm.

Also Read: GitLab Q1 Earnings: Revenue Beat, EPS Beat, Raised Guidance And More

GitLab, which has a market value of about $8 billion, is working with investment bankers to manage the sale process, which has garnered interest from peers, including cloud monitoring firm Datadog Inc DDOG, Reuters reports.

Deal-making in the technology sector is on the rise, driven by advancements in artificial intelligence and cloud computing.

GitLab CEO and co-founder Sid Sijbrandij recently announced that he is undergoing treatment for osteosarcoma, a form of cancer, for the second time.

Investors can gain exposure to GitLab through First Trust Cloud Computing ETF SKYY and Vanguard Information Tech ETF VGT.

GTLB Stock Prediction For 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at GitLab, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For GitLab, the 200-day moving average sits at $55.6, according to Benzinga Pro, which is above the current price of $54.96. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: GTLB shares traded higher by 8.36% at $54.90 at the last check on Wednesday.

Also Read:

• GitLab Shares Climb Following Board’s Revised Severance Policy

Photo by T. Schneider via shutterstock