GitLab (GTLB) stock jumped about 5% in Wednesday’s pre-market trading after the DevSecOps (development, security, and operations) platform announced that it has deepened its collaboration with Amazon’s AWS (Amazon Web Services) cloud unit. Under the expanded partnership, customers will be able to use GitLab Duo Agent Platform inference through Amazon Bedrock models that are already running on their AWS accounts.
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As AI agents generate more code and merge requests, enterprises need better control and tracking without building a new infrastructure stack. GitLab highlighted that for businesses already using AWS, the enhanced collaboration will enable them to use the GitLab Duo Agent Platform within their existing setup.
With deeper integration, enterprises will not have to evaluate a new vendor, set up separate AI systems, or deal with additional billing, as everything will remain within AWS. Furthermore, GitLab credits brought through AWS Marketplace will count toward a customer’s existing AWS spending commitments.
GitLab Strikes Strategic Deals amid Intense Pressure on Stock
The deepened integration with AWS follows GitLab’s recently announced deal with Alphabet’s (GOOGL) Google Cloud. This partnership would allow Google Cloud customers to integrate the GitLab Duo Agent Platform directly with Google’s Vertex AI models.
GitLab stock has plunged 41% year-to-date amid concerns about AI-driven disruption to traditional developer platforms. The company’s conservative outlook for the fiscal first quarter also weighed on investor sentiment. The deals with Amazon’s AWS and Google Cloud will help address investor concerns about AI disruption and the potential of GitLab’s Duo Agent Platform to some extent.
Is GTLB a Good Stock to Buy?
Given the ongoing challenges, Wall Street has a Hold consensus rating on GitLab stock based on 13 Holds, seven Buys, and two Sells. The average GTLB stock price target of $32.79 indicates 48% upside potential.
