Google has a large stake in GitLab and analysts have speculated on a takeover.
The price of GTLB has bounced from the $42.32 level and touched $48. The important resistance ahead would be the $54 level.
GitLab is set to release its Q2 2025 earnings on Tuesday after the market closes. The consensus estimate for revenue is $176.9 million, and the earnings are expected to come in at -$0.20 per share. Full year revenue is expected to be $736.6 million and the earnings are expected to be -$0.94 per share.
Wolfe Research recently suggested that Google could look at a purchase of GitLab. Cybersecurity company Wiz recently walked away from a $23B acquisition deal from the search giant. Wiz CEO, Assaf Rappaport, said in an internal company letter that “saying no to such humbling offers is tough,” but he wanted to drive his company to $1B in annual revenue.
Wolfe noted that Google is obviously keen on deals and thinks they could increase their 22% stake in GitLab. It has been reported that GitLab is exploring a sale after the San Francisco-based company attracted acquisition interest. GitLab provides cloud-based software development tools and analysts also hinted at a deal with Datadog.
M&A speculation could keep a bid under the price of GTLB shares. Wedbush noted that with the Wiz deal off the table, it could open the door for Microsoft to venture into the cybersecurity space. The Big Tech are flush with cash after bumper profits in the AI-driven rally and could be tempted to swoop for a company that is down almost 40% from its January high.
Bank of America and KeyBanc analysts both reiterated Buy calls on GitLab recently.