GitLab Inc. (GTLB): A Bull Case Theory

We came across a bullish thesis on GitLab Inc. (GTLB) on High Growth Investing’s Substack by Stefan Waldhauser. In this article, we will summarize the bulls’ thesis on GTLB. GitLab Inc. (GTLB)'s share was trading at $41.23 as of 13^th June. GTLB’s trailing and forward P/E were 458.11 and 54.95 respectively according to Yahoo Finance.

GitLab stands out in the DevSecOps landscape by positioning itself as an AI-native platform built for enterprise-grade needs in an increasingly regulated and cloud-diverse world. Unlike GitHub, which is deeply embedded within Microsoft’s Azure ecosystem, GitLab offers cloud neutrality with the flexibility to run across AWS, Azure, GCP, or on-premises environments.

This appeals especially to government entities and organizations requiring dedicated SaaS instances, with GitLab recently achieving FedRAMP certification—a move that unlocks large-scale federal contracts. GitLab Duo, the company's AI-native suite, embeds contextual intelligence throughout the software lifecycle.

Features like Duo Workflow and Duo Enterprise aim to automate multi-step developer tasks, offer test generation and root cause analysis, and ease deployment, all signaling GitLab's evolution from a DevOps tool to the operational backbone of modern software factories. Despite a deceleration in revenue growth from 36% in FY24 to an expected 25% in FY26, GitLab’s fundamentals remain strong with a near 90% gross margin and improving cash flow now that a major tax-related one-time hit is behind it.

At a $41 share price, the stock trades at 6x forward sales—its lowest valuation since IPO—yet remains attractively priced relative to SaaS peers. Alphabet’s venture arm, GV recently exited its stake, dampening takeover speculation, but GitLab’s strategic value appears undiminished.

With a growing foothold among enterprise customers and an increasingly integrated AI product suite, GitLab is positioned as a long-term structural winner in software development. Investors betting on the future of AI-enabled DevSecOps may find GitLab’s current valuation an appealing entry point.

Previously, we covered a bullish thesis on GitLab Inc. by Compounding Your Wealth in April 2025, emphasizing strong financials, enterprise traction, and AI-led product growth. A follow-up thesis by Stefan Waldhauser in June 2024 highlighted GitLab’s AI-native platform, cloud neutrality, and strategic value in regulated sectors, positioning the company as a long-term DevSecOps leader at a historically low valuation.

GitLab Inc. (GTLB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held GitLab Inc. (GTLB) at the end of the first quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of GTLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.