What's Going On With GitLab Stock After Earnings?

GitLab Inc. GTLB shares are trading higher Wednesday after the company posted better-than-expected second-quarter financial results and issued fiscal year 2025 guidance above estimates on Tuesday.

The Details:

GitLab beat analyst expectations on the top and bottom lines with revenue growth of more than 30% year-over-year. The company also said it expects earnings and revenue above analysts estimates for the fiscal year. 

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Several analysts raised price targets on GitLab following the print: 

• RBC Capital maintained an Outperform rating and raised the price target from $55 to $60.
• Scotiabank maintained a Sector Outperform and raised the price target from $59 to $65.
• Wells Fargo maintained its Overweight rating and raised the price target from $70 to $75.
• B of A Securities maintained a Buy and raised the price target from $66 to $68.
• Baird maintained an Outperform rating and raised the price target from $59 to $62.

GitLab shares are climbing on heavy volume Wednesday as traders digest the report. According to data from Benzinga Pro, GitLab shares are trading above the stock’s 50-day moving average of $48.47. 

GTLB Stock Prediction 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 $56.07, according to Benzinga Pro, which is above the current price of $52.26. 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.

GTLB Price Action: According to Benzinga Pro, GitLab shares are up 18.6% at $53.00 at the time of publication Wednesday.

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