GitLab Explores Potential Sale Amid Tech Industry Shifts

Google-backed software developer GitLab explores sale, sources say

NEW YORK, July 17 (Reuters) - GitLab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet, is exploring a sale after attracting acquisition interest, according to people familiar with the matter. GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud. (Reporting by Milana Vinn and Anirban Sen in New York; Editing by Christopher Cushing)

Exclusive: Google-backed software developer GitLab explores sale

NEW YORK, July 17 (Reuters) - GitLab (GTLB.O), opens new tab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet (GOOGL.O), opens new tab, is exploring a sale after attracting acquisition interest, according to people familiar with the matter. GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog (DDOG.O), opens new tab, the sources said. Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot (HUBS.N), opens new tab, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft (MSFT.O), opens new tab following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud. Reporting by Milana Vinn and Anirban Sen in New York; Editing by Christopher Cushing Our Standards: The Thomson Reuters Trust Principles., opens new tab Milana Vinn Thomson Reuters Milana Vinn reports on technology, media, and telecom (TMT) mergers and acquisitions. Her content usually appears in the markets and deals sections of the website. Milana previously worked at GLG and PE Hub, where she spent several years covering TMT deals in private equity. She graduated from CUNY Graduate School of Journalism with Masters in Business Journalism. Anirban Sen Thomson Reuters Anirban Sen is the Editor in Charge for U.S. M&A at Reuters in New York, where he leads the coverage of the biggest deals. After starting with Reuters in Bangalore in 2009, Anirban left in 2013 to work as a technology deals reporter in several leading business news outlets in India, including The Economic Times and Mint. Anirban rejoined Reuters in 2019 as Editor in Charge, Finance to lead a team of reporters, covering everything from investment banking to venture capital. Anirban holds a history degree from Jadavpur University and a post-graduate diploma in journalism from the Indian Institute of Journalism & New Media.

Google-backed software developer GitLab explores sale, sources say

NEW YORK - GitLab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet, is exploring a sale after attracting acquisition interest, according to people familiar with the matter. GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud. (Reporting by Milana Vinn and Anirban Sen in New York; Editing by Christopher Cushing)

Google-backed software developer GitLab explores sale

GitLab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet, is exploring a sale after attracting acquisition interest, according to people familiar with the matter. GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. (For top technology news of the day, subscribe to our tech newsletter Today's Cache) Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud. Read Comments

Google-backed software developer GitLab explores sale, sources say

GitLab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet, is exploring a sale after attracting acquisition interest, according to people familiar with the matter. GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. (For top technology news of the day, subscribe to our tech newsletter Today's Cache) Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud. Read Comments

Alphabet Backed GitLab Stock Soars On Wednesday - What's Going On? - GitLab (NASDAQ:GTLB)

GitLab's market value is approximately $8 billion, driven by cloud-based tools. Cloud software company GitLab Inc GTLB is exploring a potential sale after receiving acquisition interest, according to sources familiar with the matter, according to a Reuters report. Google parent Alphabet Inc GOOG GOOGL holds a 22.2% voting stake in GitLab through its venture capital arm. Also Read: GitLab Q1 Earnings: Revenue Beat, EPS Beat, Raised Guidance And More GitLab, which has a market value of about $8 billion, is working with investment bankers to manage the sale process, which has garnered interest from peers, including cloud monitoring firm Datadog Inc DDOG, Reuters reports. Deal-making in the technology sector is on the rise, driven by advancements in artificial intelligence and cloud computing. GitLab CEO and co-founder Sid Sijbrandij recently announced that he is undergoing treatment for osteosarcoma, a form of cancer, for the second time. Investors can gain exposure to GitLab through First Trust Cloud Computing ETF SKYY and Vanguard Information Tech ETF VGT. GTLB Stock Prediction For 2024 Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory. Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at GitLab, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For GitLab, the 200-day moving average sits at $55.6, according to Benzinga Pro, which is above the current price of $54.96. For more on charts and trend lines, see a description here. Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable. Price Action: GTLB shares traded higher by 8.36% at $54.90 at the last check on Wednesday. Also Read: GitLab Shares Climb Following Board's Revised Severance Policy Photo by T. Schneider via shutterstock Market News and Data brought to you by Benzinga APIs

Google-Backed Software Developer GitLab Eyes Sale, Reuters Says

(Bloomberg) -- GitLab Inc., a US software developer backed by Google parent Alphabet Inc., is exploring a sale after attracting acquisition interest, Reuters reported, citing people familiar with the matter. The San Francisco-headquartered company, which has a market value of about $8 billion, is working with investment bankers on the sale and has drawn interest from peers including Datadog, a cloud monitoring firm, Reuters reported. Neither GitLab or Datadog responded to Reuters' requests for comment. GitLab builds a set of tools that helps companies manage their software development cycle. It has more than 30 million registered users, including more than half of Fortune 100 companies, according to the company's website. It's a sign of increasing M&A activity in the tech sector, as companies seek to adapt their business models in the face of potential disruption by artificial intelligence. Total deal value is up this year by 47% to $220 billion, according to data compiled by Bloomberg. It follows a report earlier this week that Alphabet is in talks to buy Israeli cybersecurity company Wiz for about $23 billion. GitLab's shares have fallen 20% so far this year through Tuesday's close in New York.

Google-backed GitLab, valued at $44 billion explores sale: Report

GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud.

Google-Backed Software Maker GitLab Eyes Sale, Reuters Says

GitLab, valued at $8 billion, is considering a sale and has drawn interest from peers like Datadog, amid a surge in tech industry deals driven by AI disruptions. (Bloomberg) -- GitLab Inc., a US software developer backed by Google parent Alphabet Inc., is exploring a sale after attracting interest from potential bidders, Reuters reported. The San Francisco-headquartered company, which has a market value of about $8 billion, is working with investment bankers on the sale and has drawn interest from peers including Datadog, a cloud monitoring firm, Reuters reported, citing people familiar with the matter who it didn't identify. Neither GitLab or Datadog responded to Reuters' requests for comment. Deals in the tech industry have surged by about 47% this year, according to data compiled by Bloomberg, as companies work to expand their business models in the face of potential disruption by artificial intelligence. Alphabet is in talks to buy Israeli cybersecurity company Wiz for about $23 billion, people familiar with the matter said earlier this week. GitLab's shares jumped as much as 16% in premarket trading on Wednesday before New York exchanges opened, after closing at $50.66 previously. The stock had declined 20% so far this year. The company builds a set of tools that helps companies manage their software development cycle. It has more than 30 million registered users, including more than half of Fortune 100 companies, according to the company's website.

Exclusive-Google-backed software developer GitLab explores sale, sources say

Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud. (Reporting by Milana Vinn and Anirban Sen in New York; Editing by Christopher Cushing)

Google backed software developer GitLab explores sale - ET Telecom

Internet 2 min read Google backed software developer GitLab explores sale GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. By Milana Vinn and Anirban Sen NEW YORK: GitLab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet, is exploring a sale after attracting acquisition interest, according to people familiar with the matter. GitLab, which has a market value of about $8 billion, is working with investment bankers on a sale process that has attracted interest from peers, including cloud monitoring firm Datadog, the sources said. Any deal is still weeks away and no agreement is certain, the sources said, requesting anonymity because the matter is confidential. GitLab and Datadog did not immediately respond to requests for comment. Alphabet, which has a 22.2% voting stake in GitLab through its venture capital arm, also did not respond to a request for comment. Dealmaking in the technology sector is picking up, as advances in artificial intelligence and cloud computing push companies to expand their offerings. Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion after previously exploring an acquisition offer for marketing software company HubSpot, Reuters has reported. The technology sector accounted for the largest share of mergers and acquisitions during the first half of 2024, jumping more than 42% year-on-year to $327.2 billion globally, according to data from Dealogic. GitLab's platform allows development, operations and security teams to design and manage software using a single tool. It has more than 30 million registered users and is deployed by more than half of the Fortune 100 companies, according to its website. Its nominal headquarters are in San Francisco but all its employees work remotely. GitLab's shares, which have been trading in New York since their initial public offering in 2021, are down 16% so far this year, underperforming a 3% rise in the S&P 500 Application Software index, on concerns about its customers cutting spending. While the company reported robust year-on-year revenue growth of 33% to $169.2 million and posted its first ever positive cash flow in its latest quarter, it acknowledged it faces headwinds in pricing its offerings as it competes with Microsoft following its $7.5 billion acquisition in 2018 of rival GitHub. GitLab CEO and co-founder Sid Sijbrandij, who controls 45.51% of the voting stock through dual-class shares, said on the company's quarterly earnings call last month that he would undergo treatment for osteosarcoma, a form of cancer, for a second time after he was also treated for it last year. He added that he is working on making a full recovery and would continue with his duties. Datadog, which has a market value of $44 billion, offers software that allows technology workers to collaborate and measure their productivity using the cloud.

GitLab: Don't Chase A Buyout Rumor (NASDAQ:GTLB)

Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More " Normally, a stock trading near 52-week lows isn't the ideal time to explore a deal. GitLab Inc. (NASDAQ:GTLB) has seen a tepid rally following reports the company is seeking a potential sale after attracting acquisition interest. My investment thesis is more Neutral on the stock trading up at $54 following the bump for the merger rumors. GitLab is definitely ripe for an acquisition due to the stock languishing since a hot IPO at the end of 2021. Investors holding GitLab since the stock traded over $100 following the initial trading are likely frustrated with the DevOpsSec company trading down over 50% some 30 months later. According to the news, GitLab is working with investment bankers on a sales process, though the news seems more a rumor than any hardcore details. Plenty of companies will see if any acceptable bids will come forward without any intent to unload the stock to the highest bidder. Google parent Alphabet (GOOG, GOOGL) owns 22.2% of the voting stock and could be a potential acquirer, but the company is apparently engaged in a major deal to buy cybersecurity cloud provider Wiz for $23 billion. Google would be a very unlikely buyer right now, possibly limiting the bids to the suggested Datadog (DDOG). GitLab runs a DevSecOps platform, benefitting already from AI growth. The platform likely has the best opportunity for success with the cloud monitoring platform of Datadog along with less regulatory than a buyout from a big tech firm, not to mention Google might work to block a deal to Amazon (AMZN) or another tech giant. The company has some other reasons for pursuing a deal now, but these issues might not be legitimate. The controlling shareholder undergoing cancer treatments again and competitive pricing threats from Microsoft (MSFT) are the primary reasons the company might look to dump the business now. Back on the FQ1 '25 earnings call, CEO Sid Sijbrandij sadly confirmed another flare up of the cancer issue he faced last year: On a personal note, during a recent routine scan, I learned that I need to again undergo treatment for osteosarcoma, the same form of cancer I was treated for in 2023. My doctor believes that this finding is part of the original lesion and that as such the disease has not metastasized. I'm working on making a full recovery. The other issue is competitive pricing threats from Microsoft. The tech giant bought GitHub back in 2018, so a Microsoft threat doesn't seem a logical reason to dump the shares now, though the tech giant is strong in AI due to the relationship with OpenAI. As mentioned back on the FQ1 earnings call, Microsoft Developer Copilot already has 1.8 million pay subs with potentially more than $100 million in ARR. GitLab is only getting started with GitLab Duo. The best way to handle these merger rumors is to buy dips. Our prior research highlighted how GitLab was a buy on dips, such as the move to the low-$40s in mid-June. GitLab estimates a 10x improvement in software development using their tools. The business should thrive during the great software boost from new AI tools, and the cloud neutrality from the major tech giants is an advantage in this race. The company has forecasted sales growth of up to 27% this year, and the stock entered today trading at just below 9x FY26 (Jan.) revenue estimates of $921 million. The consensus analyst estimates have revenues growing at least 25% annually through FY27 and likely beyond, but the stock trading much above 10x sales forward a year is a rather rich premium. The time to load up is when market doldrums allows the stock to dip back into the mid-$40s where GitLab was trading at 7x FY26 revenue targets. The company is already profitable with a cash balance topping $1 billion, so the BoD shouldn't be desperate to unload the business for financial reasons. Outside the CEO cancer scare, GitLab really has no reason to unload the stock now outside a massive premium. These sales processes where investment bankers are brought in typically don't lead to big premiums due to buyers lacking motivation. The only way to play a potential merger is to buy at the right place for long-term growth. If a big premium buyout occurs, an investor can quickly cash in a big gain. If not, an investor chasing the stock here at $54 will find their trade underwater quickly. The key investor takeaway is that GitLab Inc. appears poised to ride a strong wave in AI demand for DevOpsSec platforms. A buyout is less than ideal, starting with the stock trading near all-time lows and a lot of the potential buyers clashing with the Google investment. Investors are best to wait for a dip to buy GitLab for a long-term investment, to where a buyout with a large premium is just a bonus.