GTLB Stock Eyes Third Day Of Gains: What’s Fueling This Turnaround?

• Joint customers can now run GitLab Duo through Amazon Bedrock, using existing AWS infrastructure. 
• On Monday, RBC downgraded GitLab, cutting its target to $25 on macro and competitive headwinds. 
• GitLab shares fell 17% in March after weak FY2027 guidance, which showed slower revenue growth of 15%–17%.

GitLab Inc. (GTLB) stock is set for its third day of gains driven by its expanding role in artificial intelligence-powered software development and a major partnership with Amazon Web Services.

The company’s stock sank 17% in March after management issued cautious guidance for fiscal 2027, prompting negative investor reaction. The company projected revenue growth of 15% to 17%, down from 26% in fiscal year 2026.

GTLB’s AI Expansion With AWS 

On Tuesday, GitLab said it has expanded its AI capabilities through a deeper integration with Amazon Web Services (AWS), strengthening its position in the rapidly evolving DevSecOps landscape as enterprises ramp up adoption of agent-based software development tools.

The company said that joint customers can now channel GitLab Duo Agent Platform inference through Amazon Bedrock, allowing organizations to use existing AWS infrastructure and pre-committed cloud budgets without adding new vendors. 

The integration enables companies already on AWS to operate GitLab’s AI tools within their established cloud ecosystem. This includes using approved Bedrock models and applying AWS Identity and Access Management (IAM) policies. 

“Most enterprise leaders I talk to want to adopt agentic AI without building a second stack next to the cloud environment they already use.”

-Manav Khurana, chief product and marketing officer, GitLab

GitLab stock gained over 4% premarket on Wednesday. On Stocktwits, retail sentiment around the stock changed to ‘neutral’ from ‘bullish’ territory the previous day and the retail message volume saw a 66% rise in 24 hours. 

RBC Capital’s Take On GitLab’s Growth 

On Monday, RBC Capital downgraded the software company’s stock and slashed the price target to $25 from $33, citing a mix of macroeconomic and competitive challenges expected to weigh on near-term performance.

RBC analysts pointed to several headwinds that could limit upside in the coming quarters, including difficult comparisons tied to prior price increases in GitLab’s Premium offerings and heightened exposure to customers sensitive to software spending.

The firm also highlighted risks tied to sales transitions, where shifting customer contracts and adoption cycles may temporarily disrupt revenue consistency. In addition, broader corporate cost-cutting trends, including layoffs across the technology sector, were flagged as a potential drag on new deal activity.

GTLB stock has declined by over 40% year-to-date. 

Also See: TSCO Stock: Analysts Turn Cautious On Tractor Supply After Weak Q1 Print, But Retail Says ‘Oversold’

For updates and corrections, email newsroom[at]stocktwits[dot]com.