On November 14, Connecticut-based Stadium Capital Management performed a surgical removal of 61,700 GitLab shares from its portfolio. The act was neither cruel nor unusual, merely arithmetic.
What Happened
The Securities and Exchange Commission received a filing on November 14, its language as sterile as a coroner’s report. Stadium Capital Management had liquidated 61,700 GitLab shares during Q3, reducing its stake to 84,683 shares valued at $3.8 million. The transaction shaved $2.8 million from the position’s worth-a subtraction that speaks louder than any quarterly letter.
What Else to Know
GitLab now constitutes 4.1% of Stadium’s 13F assets under management, down from 6.1% in the previous quarter. The fund’s remaining top holdings read like a ledger of calculated bets: NYSE:BLDR at 23.7%, NYSE:BC at 20.8%, NASDAQ:SNBR at 19.6%. Comfort is found not in conviction, but in diversification.
GitLab shares closed at $41.06 on Friday-a 36% collapse from their 52-week peak. The S&P 500, meanwhile, climbed 14% over the same period. Markets are not kind; they are accountants with a taste for blood.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Friday) | $41.06 |
| Market Capitalization | $6.8 billion |
| Revenue (TTM) | $858 million |
| Net Income (TTM) | ($9.1 million) |
Company Snapshot
GitLab sells software that stitches together the disjointed organs of DevOps. Its platform is a single application claiming to cure the chronic ailments of fragmented development cycles. Subscriptions flow like tap water, nourishing enterprises and public sectors alike. The pitch is seductive: efficiency through unification. Yet the market has decided, for now, that promises of operational nirvana are worth precisely $41.06 per share.
Foolish Take
The stock’s 60% descent from 2021 peaks has created a laboratory for observing investor psychology. Stadium Capital’s partial exit suggests a hypothesis: even the strongest operating metrics cannot outrun a market allergic to speculation. Q2 revenue grew 29% to $236 million. Non-GAAP margins ballooned to 17%. Operating cash flow surged to $49.4 million-a 322% leap. Yet shares remain in intensive care.
GitLab’s defenders argue these fundamentals are anchors in a storm. Its AWS partnership and AI-native tools are arrows in the quiver. But the market’s verdict is final: growth without immediate profitability is a poem no one reads twice. For those who measure risk in decades, not quarters, the valuation offers a gamble-though not one for the faint-hearted. The bones of the business remain unbroken, but the flesh is cheap.
Glossary
13F: A quarterly confession of holdings, filed not out of virtue but compulsion.
Assets Under Management (AUM): The total value of a fund’s loot, before fees and folly.
Position: The number of shares a fund refuses to admit it’s emotionally attached to.
Top Holdings: The investments a fund sleeps beside, night after night.
DevOps: A religion of software creation, where developers and IT operators hold hands and pray for uptime.
Lifecycle: The journey from birth to obsolescence, preferably profitable at every stage.
Platform: A buzzword for software that claims to do everything, except make you coffee.
TTM: Trailing Twelve Months-the rearview mirror of financial performance.
The numbers don’t lie, but they often withhold the punchline. 💼
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2025-12-01 00:52