GTLB
+11.99%
What to make of the markets today? Volatility is way up. January brought us a market correction to start out 2022 – but then the last three trading sessions saw impressive daily gains. Investor sentiment is getting a boost from a generally positive earnings season, but Dubravko Lakos-Bujas, JPMorgan's global head of equity research, has identified some additional support for the markets.
“[The] Fed is likely to strike a more dovish tone relative to extreme investor expectations, which could trigger an equity rebound. Expectations are so hawkish at this point, we believe the bar for a positive surprise from the Fed at the current juncture is fairly low,” Lakos-Bujas noted.
The stock analysts at JPMorgan are following the strategy team’s lead, and finding stocks with a bullish outlook going on from here. Their comments make some interesting reading, as do their predictions of 40% upside or better. Let's take a closer look.
GitLab (GTLB)
We’ll start by looking at GitLab, a DevOps platform that allows enterprise customers to develop software with both speed and efficiency while maximizing the overall return of the final software product. The platform allows for collaborative planning, building, deployment, and security in the development process. GitLab is an ‘open core’ company, meaning customers can use the basic platform for free as an open source system; the company sells proprietary upgrades and add-ons by subscription.
The open core model has been successful for GitLab. The company was founded back in 2014, and since then has seen its base expand to some 30 million users. This number includes 1 million active license users – the source of revenue – and 2,500 members of an active community of users and developers who offer contributions to the open source base software.
GitLab jumped the IPO bandwagon last year, taking advantage of the bullish market trends to go public and raise capital. The IPO opened in October; the company put 10.4 million shares of common stock on the market at $77 each – and then saw the stock jump to more than $100 on its first day of trading. GitLab raised approximately $650 million through its initial offering. Since then, however, the stock has fallen sharply, by some 41% from its first-day closing price.
In December, GitLab reported its first quarterly results as a public company, for Q3 of fiscal year 2022. The release showed a strong 58% year-over-year revenue gain, from $42.2 million in the year-ago quarter to $66.8 million in the current report. GitLab’s revenue was supported by even stronger increases in the customer base, with a 66% gain in customers with more than $5,000 in annual recurring revenue (ARR), and a 73% gain in customers with more than $100,000 in ARR.
+11.99%
What to make of the markets today? Volatility is way up. January brought us a market correction to start out 2022 – but then the last three trading sessions saw impressive daily gains. Investor sentiment is getting a boost from a generally positive earnings season, but Dubravko Lakos-Bujas, JPMorgan's global head of equity research, has identified some additional support for the markets.
“[The] Fed is likely to strike a more dovish tone relative to extreme investor expectations, which could trigger an equity rebound. Expectations are so hawkish at this point, we believe the bar for a positive surprise from the Fed at the current juncture is fairly low,” Lakos-Bujas noted.
The stock analysts at JPMorgan are following the strategy team’s lead, and finding stocks with a bullish outlook going on from here. Their comments make some interesting reading, as do their predictions of 40% upside or better. Let's take a closer look.
GitLab (GTLB)
We’ll start by looking at GitLab, a DevOps platform that allows enterprise customers to develop software with both speed and efficiency while maximizing the overall return of the final software product. The platform allows for collaborative planning, building, deployment, and security in the development process. GitLab is an ‘open core’ company, meaning customers can use the basic platform for free as an open source system; the company sells proprietary upgrades and add-ons by subscription.
The open core model has been successful for GitLab. The company was founded back in 2014, and since then has seen its base expand to some 30 million users. This number includes 1 million active license users – the source of revenue – and 2,500 members of an active community of users and developers who offer contributions to the open source base software.
GitLab jumped the IPO bandwagon last year, taking advantage of the bullish market trends to go public and raise capital. The IPO opened in October; the company put 10.4 million shares of common stock on the market at $77 each – and then saw the stock jump to more than $100 on its first day of trading. GitLab raised approximately $650 million through its initial offering. Since then, however, the stock has fallen sharply, by some 41% from its first-day closing price.
In December, GitLab reported its first quarterly results as a public company, for Q3 of fiscal year 2022. The release showed a strong 58% year-over-year revenue gain, from $42.2 million in the year-ago quarter to $66.8 million in the current report. GitLab’s revenue was supported by even stronger increases in the customer base, with a 66% gain in customers with more than $5,000 in annual recurring revenue (ARR), and a 73% gain in customers with more than $100,000 in ARR.
