Why Investors Shouldn’t Be Surprised By GitLab Inc.’s (NASDAQ:GTLB) 26% Share Price Surge
GitLab Inc. (NASDAQ:GTLB) shareholders are no doubt pleased to see that the share price has bounced 26% in the last month, although it is still struggling to make up recently lost ground. But the gains over the last month weren’t enough to make shareholders whole, as the share price is still down 6.4% in the last twelve months.
After such a large jump in price, GitLab’s price-to-sales (or “P/S”) ratio of 11.6x might make it look like a strong sell right now compared to other companies in the Software industry in the United States, where around half of the companies have P/S ratios below 5x and even P/S below 1.7x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the…
