GTLB - Why GitLab Shares Plunged in January
Shares of GitLab (NASDAQ: GTLB) fell 26.4% in January 2022, according to data from S&P Global Market Intelligence . The provider of software development tools has now lost 30% of its value since its first day on the market , Oct. 14 of last year.
This stock is a victim of Wall Street's retreat from high-risk stocks, but GitLab is taking a more brutal pummeling than most growth stocks. The very recent market debut plays a large role in Wall Street's perception of outsize risk here, as investors and analysts alike need a few quarters' worth of properly reported operating results before pinning a solid market value on new stocks.
GitLab's unstable footing is underscored by a massive short-seller interest in the stock. Nearly 37% of the market float was on loan to bearish investors with a negative outlook as of Jan. 14.
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Why GitLab Shares Plunged in January