Competition ConcernsInvestors are concerned about GitLab's ability to compete effectively against Microsoft, given the strength of Azure and its integration with a growing set of AI capabilities.
Market PenetrationSome investors believe GitLab's total addressable market may be more penetrated than initially estimated, with GitLab's market share closer to 20% and Microsoft/GitHub close to 50%.
Market ReactionShares have declined around 7% since the company’s earnings report, reflecting a negative market reaction.