Software development tools maker GitLab (NASDAQ:GTLB) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 26.8% year on year to $214.5 million. The company expects next quarter’s revenue to be around $226.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.17 per share was 11.8% above analysts’ consensus estimates.
GitLab’s stock price has taken a beating over the past six months, shedding 28.6% of its value and falling to $45.60 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
A cash-heavy balance sheet is often a sign of strength, but not always.
Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Twilio (NYSE:TWLO) and the rest of the software development stocks fared in Q4.
A number of stocks jumped in the afternoon session after stocks extended their rebound, led by strong gains in the technology sector, as renewed optimism surrounding U.S.–China trade negotiations lifted investor sentiment.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
