5/11/2026 at 11:36:05 PM
https://www.google.com/search?q=gitlab+stock shows their stock price was ~$52 a year ago and is $26 today, so down 50% in 12 months. It's quite possible this is because they weren't making enough noise about their AI strategy.If investor fears are that AI makes GitLab's business less valuable, including this in their "GitLab Act 2" announcement makes a whole lot of sense:
> The agentic era multiplies demand for software. Software has been the force multiplier behind nearly every business transformation of the last two decades. The constraint was the cost and time of producing and managing it. That constraint is collapsing. As the cost of producing software collapses, demand for it will expand. Last year, the developer platform market used to be measured in tens of dollars per user per month, this year it is hundreds/user/month and headed to thousands. Not only is the value of software for builders increasing, but we believe there will be more software and builders than ever, and we will serve an increasing volume of both.
Wrote a bit more about this on my blog: https://simonwillison.net/2026/May/11/gitlab-act-2/
by simonw
5/12/2026 at 8:58:51 AM
Looking at their stock it has always been going down, even before AI. How could we know that the reason it's going down now is they were not making enough noise about AI, and not whatever it was that was making it go down before?by dandellion
5/12/2026 at 11:55:13 AM
We can't. It's rarely possible to confidently say why a stock moves. Hence "quite possible" in my comment.by simonw
5/12/2026 at 3:45:09 PM
There's no reason to tie every software companies rise and fall to AI. Several years ago they changed their enterprise licensing costs. It was such an aggressive and needless cash grab (1k/dev). The writing has been on the wall for a long time.by gritspants
5/12/2026 at 6:08:19 AM
> It's quite possible this is because they weren't making enough noise about their AI strategy.That's how I interpret the move, too.
by Yoric
5/13/2026 at 8:04:22 AM
> As the cost of producing software collapses, demand for it will expand.This is a non sequitur. Jervons paradox doesn't apply here. No-one is sitting around going "you know what I need? More software". The supply side is exploding. Demand? I dunno man.
by popcorncowboy
5/13/2026 at 11:17:01 AM
> No-one is sitting around going "you know what I need? More software"I disagree. Every company goes "I need more software — iff its TCO is less than the savings it produces". So if the cost of producing a piece of software, which can save a company $1m per month, now costs $500k per month to develop instead of $5m per month, then demand for that piece of software will absolute go from zero to greater-than-zero.
by runeks
5/12/2026 at 12:39:15 PM
Down almost 15% now. Investors hate the CEO's buzzword bingo slop.by throwawaypath