GitLab Stock Is Down 70% From 2021 Highs but One Fund Is Betting $10 Million on Its Performance
Key Points
Massachusetts-based TFJ Management added 116,490 shares of GitLab in the third quarter.
The move contributed to an estimated $5.25 million increase in the overall position value relative to the previous period.
As of September 30, the fund reported holding 221,259 GitLab shares valued at $9.97 million.
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Massachusetts-based TFJ Management disclosed a purchase of 116,490 additional shares of GitLab (NASDAQ:GTLB), increasing its position by an estimated $5.25 million as of September 30.
What Happened
According to a filing with the Securities and Exchange Commission dated November 13, TFJ Management increased its investment in GitLab by 116,490 shares during the third quarter. The firm’s position in GitLab rose to 221,259 shares with a quarter-end market value of $9.97 million.
What Else to Know
TFJ Management’s buy brings its GitLab holding to 6.72% of 13F AUM, outside the fund's top five positions.
Top holdings after the filing:
- NASDAQ: APP: $39.15 million (26.4% of AUM)
- NYSE: CPNG: $25.14 million (16.9% of AUM)
- NYSE: KAR: $17.80 million (12.0% of AUM)
- NASDAQ: CCC: $12.46 million (8.4% of AUM)
- NYSE: HGV: $11.13 million (7.5% of AUM)
As of Friday, GitLab shares were priced at $38.00, down 32% over the past year and well underperforming the S&P 500, which is up 16.5% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $906.25 million |
| Net Income (TTM) | ($46.47 million) |
| Market Capitalization | $6.40 billion |
| Price (as of market close Friday) | $38.00 |
Company Snapshot
- GitLab offers a unified DevOps platform supporting the entire software development lifecycle, with additional revenue from professional services and training.
- The company serves a global customer base of businesses and development teams seeking to streamline software delivery, security, and collaboration.
- Headquartered in San Francisco, California, and founded in 2011, GitLab operates in the technology sector and focuses on software application solutions.
GitLab is a leading provider of DevOps lifecycle software, enabling organizations to plan, build, secure, and deploy applications efficiently through a single platform. The company leverages a subscription-based model to drive predictable, recurring revenue and serves a diverse, international client base. GitLab's integrated approach positions it competitively in the rapidly evolving software development and deployment market.
Foolish Take
What makes this move worth paying attention to is not the timing but the tolerance for volatility it implies. GitLab remains one of the more emotionally traded enterprise software names, still down roughly 70% from its post-public-market highs even as its underlying business keeps compounding. That disconnect matters for long-term investors deciding whether the stock’s drawdown reflects broken growth or simply a reset in expectations.
In its latest quarter, GitLab reported revenue of $244.4 million, up 25% year over year, while delivering $27.2 million in adjusted free cash flow and a non-GAAP operating margin of 18%. Dollar-based net retention held at a strong 119%, and customers spending more than $100,000 annually grew 23%. Those are not the numbers of a company in retreat. They are the numbers of a platform still expanding inside large enterprises while tightening its cost structure.
The position also fits cleanly within TFJ’s broader portfolio, which skews toward volatile growth names like AppLovin and Coupang rather than defensive compounders. At roughly 6.7% of reported assets, GitLab is meaningful but not dominant, suggesting conviction without concentration risk. For patient investors, GitLab remains volatile, but the fundamentals are stabilizing faster than the stock price implies. That gap is where long-term opportunity tends to live.
Glossary
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
13F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the SEC.
Reportable assets: Investments that must be disclosed in regulatory filings, such as those required by the SEC.
Stake: The ownership interest or number of shares held by an investor in a company.
DevOps: A set of practices combining software development and IT operations to improve the speed and quality of software delivery.
Subscription-based model: A business approach where customers pay recurring fees for ongoing access to a product or service.
Professional services: Specialized support or consulting provided to help clients implement or optimize a company's products.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GitLab. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.
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