Watchlist Radar - Week 7

GitLab is an all-in-one development, security, and operations platform enabling the planning, buildout, review, security, and deployment of software at scale. Contrary to the recent AI sell off, Gitlab should if anything be a beneficiary as the need to vet huge amounts of AI generated code only increases. Developer time will shift from from writing code towards oversight and implementation which is exactly what Gitlab helps facilitate. As for vibe coded competitors, security and auditability are non-negotiables. This is especially true for large organizations for which Gitlab has gained the trust of over many years of iteration, customer feedback, and certification.

Gitlab prices per seat which makes for a big uncertainty going forward. On the flip side, this could mean pricing per agent instead of per human in the near future. They have enviable unit economics and a large runway left to grow into an expanding TAM. Shares now trade for an EV/ARR of 8x.