Despite record cash flow and a promising AI transformation, the GitLab stock price plummeted by over 30%. In this article, I will review my investment case and explain why I added to my position.
Hi Stefan, I wonder what the impact might be if things go completely wrong with the previous CEO and largest shareholder with voting rights, given his serious health problems? I find it very delicate to ask, but it is nevertheless an important concern.
You are right. It's a delicate but very good question. There's a lot of uncertainty surrounding Sid's health and his intentions for the future of the company he has built. I can only speculate that this uncertainty may already be a reason for the relatively low valuation of GTLB compared to its peers. I stay invested despite this uncertainty because I trust the new CEO Bill Staples will steer the ship into the right direction even without Sid if it's necessary.
Great write up!
Hi Stefan, I wonder what the impact might be if things go completely wrong with the previous CEO and largest shareholder with voting rights, given his serious health problems? I find it very delicate to ask, but it is nevertheless an important concern.
You are right. It's a delicate but very good question. There's a lot of uncertainty surrounding Sid's health and his intentions for the future of the company he has built. I can only speculate that this uncertainty may already be a reason for the relatively low valuation of GTLB compared to its peers. I stay invested despite this uncertainty because I trust the new CEO Bill Staples will steer the ship into the right direction even without Sid if it's necessary.
For potential GitLab investors, the key question is not about a specific financial metric or a funky AI feature.
But rather: "When will it catch up with GitHub in terms of users?".
Why should this be the key question for investors? This is not a "winner takes it all" market.