Jim Cramer is Bearish On These 5 Stocks in April

4. Gitlab  Inc (NASDAQ:GTLB)

Number of Hedge Fund Investors: 40

DevSecOps platform company Gitlab  Inc (NASDAQ:GTLB) ranks fourth in our list of the stocks Jim Cramer is bearish on. When asked about the stock in a latest program, Cramer said he went through Gitlab  Inc’s (NASDAQ:GTLB) last quarter with a “fine-toothed comb” and didn’t like it. Cramer said the earnings report had nothing that would make him feel good about this “high-multiple stock.”

Baron Discovery Fund stated the following regarding GitLab Inc. (NASDAQ:GTLB) in its fourth quarter 2023 investor letter:

“GitLab Inc. (NASDAQ:GTLB) is an end-to-end software development and IT operations platform that enterprises use to create, secure, and deploy programming code. The stock rose after GitLab delivered strong quarterly results driven by improving win rates in enterprise deals, solid seat growth, and higher average selling prices. In recent years, GitLab has delivered more than 400 feature enhancements to its platform, enabling its customers to consolidate more software development steps into GitLab, lowering total IT costs and achieving faster software delivery times. As a result, GitLab has realized higher average revenue per user (ARPU) through a combination of price increases and upgrades to its Ultimate Tier product. These ARPU increases, coupled with consistent user growth, bode well for future sales and margin expansion. GitLab also has several exciting new growth levers, including a monetizable generative AI product that helps developers write code, detect vulnerabilities automatically, and remediate bottlenecks in the coding process, a new enterprise planning SKU that brings non-developers onto the platform, and a Dedicated Tier for clients in regulated industries.”