GitLab Inc. (GTLB): A Bull Case Theory

We came across a bullish thesis on GitLab Inc. on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on GTLB. GitLab Inc. ‘s share was trading at $47.69 as of September 2^nd. GTLB’s trailing and forward P/E were 529.89 and 63.69 respectively according to Yahoo Finance.

GitLab (GTLB) is a leading DevSecOps platform that integrates the entire software development lifecycle, from planning and coding to testing, security, deployment, and monitoring. Its competitive advantage lies in offering a comprehensive suite of tools within a single platform, enhanced by AI-driven code suggestions and automated test generation. This integrated approach enables developers to identify vulnerabilities early and accelerates productivity, making GitLab highly attractive to large organizations such as Intel, Nvidia, T-Mobile, Goldman Sachs, and Lockheed Martin, as well as universities and research institutions.

Despite its strong value proposition, GitLab went public at the end of 2021, an unfavorable time for unprofitable growth companies, and its stock was hit hard during the 2022 market sell-off. However, the company has since improved its fundamentals, with revenue growing 27% year-over-year and 29% over the past four quarters, no long-term debt, and $104 million in free cash flow, bringing it close to profitability. This inflection point is critical, as achieving profitability often triggers a meaningful market rerating.

Institutional ownership trends underscore confidence in GitLab’s trajectory, with notable buying activity in recent quarters from firms like Vanguard and Ameriprise, offsetting BlackRock’s partial exit. The ongoing shift to remote work and the broader digital transformation of the global economy provide a structural tailwind for GitLab, positioning it to scale rapidly. With strong financial progress, growing adoption among blue-chip clients, and the potential catalyst of profitability, GTLB represents a compelling investment case with significant upside potential.

Previously we covered a bullish thesis on GitLab Inc. (GTLB) by Compounding Your Wealth in March 2025, which highlighted strong Q4 results, enterprise adoption, and AI-driven growth. The stock has remained flat since, as valuation tempered sentiment. The thesis still stands given profitability and enterprise expansion. Denis Gorbunov shares a similar view but emphasizes fundamentals, free cash flow, and institutional buying.

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Disclosure: None.