technology
GitLab’s stock price rose by as much as 35.4%, the largest one-day gain for the company since going public.
NEW YORK (Reuters) – Gitlab stock jumped more than 35% after the software development platform announced plans to launch a revenue-boosting artificial intelligence (AI)-powered product.
GitLab, widely used by software developers for their coding efforts, is adding a “ModelOps” feature to its main “DevSecOps” platform with new features such as code writing suggestions. GitLab said late Monday that the product will be available this year for $9 a month.
Analysts at Bank of America, led by Koji Ikeda, said in an investor note that “this product… could drive healthy growth in FY2025.”
GitLab’s stock price rose by up to 35.4%, the biggest one-day gain since the company went public in 2021. By mid-afternoon, it was up 31.8% to $46.66.
GitLab announced Monday that its first-quarter revenue grew 45% to $126.9 million, beating Refinitiv’s consensus forecast and the company’s prior forecast. Several analysts have raised their price targets on GitLab stock in response to the news.
An average of 18 analysts recommended buying Gitlab stock, with a median price target of $53.50, according to Refinitiv.
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