GitLab shares soared more than 35% on Tuesday after the software development platform announced plans to launch an AI-powered product aimed at boosting revenue.
GitLab, widely used by software developers for coding work, will add a “ModelOps” feature to its main platform “DevSecOps” with new features including tips for writing code.
The product is expected to launch this year for $9 a month, GitLab said on Monday.
“The product … has the potential to be an engine of healthy growth in fiscal year 25,” Bank of America (BofA) analysts led by Koji Ikeda said in a note to investors.
GitLab shares rose 35.4%, its largest one-day percentage increase since the company went public in 2021. Shares rose 31.1% to $46.44 in the afternoon.
GitLab said on Monday that its first-quarter revenue increased 45% to $126.9 million, topping Refinitiv’s consensus estimate and the company’s previous forecasts. With the news, several analysts raised their price targets for GitLab stock.
On average, 18 analysts recommended buying GitLab stock and set an average price target of $53.50, according to Refinitiv.
Source: Terra
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