GTLB stock is rallying on strong Q2 results and forward guidance, despite concerns about sequential earnings slowdown and competition from Microsoft and AI-native platforms.

GitLab in focus in fact some new highs. Yeah, GitLab off to the races this morning. Those shares surging double digits off the back of a better thanex expected quarter here.

Revenue jumping 21% year-over-year to 286.3 million. You are seeing shares rally some 14% right now. Uh revenue topping expectations. Adjusted earnings coming in at uh better than expected as well.

Uh better than consensus here. Adjusted earnings per share coming in at 24 cents there. Street was looking for 18 cents.

Uh management says that generative AI is expected to expand its opportunity by increasing the amount of overall software being created. So they say that look they are positioning themselves as the essentially the control center for all the work that's going to happen. It's not just another AI coding tool.

Uh in terms of the outlook for the third quarter, GitLab expecting revenue of between 281 to 283 million. That's uh ahead of consensus here for uh what they're guiding for in terms of earnings.

They're expecting adjusted earnings per share to come in between 19 to 20 cents. that's also ahead of expectations.

So, there's a near-term growth story here. It's not just about the quarter gone. Um, now to be fair, it is a sequential slowdown from the previous quarter when you look at the guide on earnings 19 to 20 versus this 24 cent beat here.

Um, they do face competition. The competitive landscape is crowded. Some would say from Microsoft's GitHub, from Anthropics, Claude Code, and other AI native development platforms.

But Wall Street certainly likes this result. It was a strong quarter. This is off the back of um better than expected revenue. They had record bookings as well. So, we're off to the races here.

Yeah, nice 52- week high. Last three years, it did hit $78. So, um 52- week high is probably the best way to say this. I did see some price targets at between 47 and 57 and right now we're seeing it at uh 50 bucks. So, we'll see what happens.