Does Generative AI Finally Make GitLab Stock a Buy?
As with nearly every other computing technology company earnings call in recent months (and non-tech company earnings calls too, for that matter), GitLab (NASDAQ: GTLB) led off its most recent financial report by talking about artificial intelligence (AI). AI, of course, is nothing new. Research and development into software that can automate redundant tasks has been going on for decades. But new breakthroughs in machine learning have brought generative AI services like ChatGPT to market, giving users the ability to will new digital things into existence with simple text commands.
Much has been said about why generative AI is a game changer. But what does it mean for a company like GitLab, and is its stock a buy now?
To introduce the merits of investing in GitLab, let's review what software is. I like to think of it as any other product that needs to be designed, manufactured, and then sold to a business to accomplish some task -- much the same as factory equipment, vehicles, office chairs, pens, or coffee pots. The big difference is that software has this incredible ability to be made once, then copied and sold for little to no additional cost as many times as there is a willing buyer. That's where those hefty profit margins come from in software-based businesses.
Source Fool.com
