GitLab Stock Plummets 10.35% in Two Days, Trading Volume Hits $289 Million Ranking 328th

On July 11, 2025, GitLab (GTLB) experienced a significant drop in its stock price, falling by 6.79% and marking its second consecutive day of decline, with a total decrease of 10.35% over the past two days. The trading volume for the day was substantial, reaching $289 million, placing GitLab at the 328th position in terms of trading volume for the day.

GitLab's recent stock performance can be attributed to several factors. The company's conservative guidance for the upcoming quarters has raised concerns among investors, leading to a pullback in the stock price. Despite this, some analysts view the current situation as a potential buying opportunity, given the company's strong fundamentals and growth prospects.

GitLab's financial performance for the first quarter of FY26 was robust, with revenue increasing by 27% year-over-year to $214.5 million. The company also achieved a non-GAAP operating margin of 12.2%, a significant improvement from the negative 2.3% in the previous year. Additionally, GitLab reported an adjusted free cash flow of $104.1 million, with a margin of 49%.

However, there are some concerns that could impact GitLab's stock price in the near term. The company's Q1 beat was described as one of the 'skinniest' since its IPO, indicating tighter performance margins. There was also a noted deceleration in sequential customer adds, particularly in the $100,000 ARR cohort. Furthermore, GitLab experienced a back-end weighted linearity in the quarter, which could indicate potential challenges in deal closures.

Despite these challenges, GitLab continues to see strong adoption of its AI-native DevSecOps platform. The company launched GitLab 18, introducing new product capabilities that enhance core DevOps, security, and AI functionalities. Additionally, GitLab achieved FedRAMP Moderate authorization, which is expected to boost its public sector business with its Dedicated offering.