You can’t get around price hikes these days. Go to the grocery store, your favorite clothing store, or anywhere else, and something you paid $5 for last month is probably $7 or more this month. But some are actually benefiting from this move, and Gitlab (NASDAQ:GTLB) is on that list. As a result, it finished over 16% higher in today’s trading session.
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Basically, Gitlab has bowed to the inevitable and hiked prices for the first time in the last five years on its premium service. Previously, Gitlab Premium came in at $19 per month per user, but now it will go to $29 per month per user. For those currently on Gitlab Premium, however, there will be a discount, but the kind of discount that means a smaller price hike. Specifically, current Gitlab Premium users will pay just $24 per month.
In a bid to perhaps soften the blow, Gitlab won’t just hike prices and call it a day. No, Gitlab Premium now boasts 400 new features, which were added to the program since 2018. Recently, Gitlab offered several improvements, including for merge requests and GitOps functions. Barclays analyst Ryan MacWilliams noted that the move was likely to perk up investors’ spirits. The extra cash brought in from the move may encourage investors about Gitlab’s long-term prospects.
Overall, analyst consensus calls Gitlab stock a Strong Buy with 21.27% upside potential thanks to its average price target of $60.88.
