GitLab Inc. Stock Reacts to Datadog Acquisition Speculation
Date: 2025‑10‑17
Ticker: GTLB (Nasdaq)
Market Cap: $6.7 billion
GitLab Inc. experienced a sharp reversal in its share price on Thursday, 17 October, as market sentiment shifted in response to rumors that Datadog, Inc. (DDOG) may acquire the dev‑ops platform provider. The stock surged more than 10 % early in the trading day before falling back to its opening price by market close.
1. Morning Surge (09:00‑11:00 ET)
- Opening price (2025‑10‑16): $45.31.
- Peak price (2025‑10‑17): $50.06, a 10.6 % increase.
- The rally began after multiple outlets—FinViz, Investing.com, and Yahoo Finance—reported renewed speculation that Datadog is pursuing an acquisition of GitLab.
- Analysts at Raymond James maintained a “Buy” rating during the rally, citing the potential for a premium on GitLab’s valuation relative to its current 52‑week range (high: $74.18; low: $37.90).
2. Subsequent Pullback (11:00‑15:00 ET)
- Closing price (2025‑10‑17): $45.32, essentially unchanged from the previous day.
- The decline was driven by a correction in the broader technology sector and a shift in investor sentiment after Datadog’s stock fell 5.53 % on Thursday, reflecting doubts about the feasibility of the deal.
- Despite the drop, the share price remained above the 52‑week low of $37.90, indicating that the market still valued GitLab’s core operations.
3. Market Reaction and Analyst Commentary
| Source | Time (ET) | Key Point |
|---|---|---|
| Forbes | 13:47 | Discussed whether a $48 target was realistic, noting GitLab’s operating performance and the impact of acquisition rumors. |
| Investing.com | 12:54 | Highlighted a jump in GitLab stock amid Datadog takeover speculation. |
| FinViz | 12:43 | Asked whether the 10.6 % jump could translate into sustained strength. |
| Yahoo Finance | 14:08 | Reported a 10 % jump on acquisition buzz. |
| Forbes | 14:18 | Noted Datadog’s stock decline as investors questioned the acquisition’s likelihood. |
| TipRanks | 08:38 | Emphasized that Datadog’s share price fell 5.53 % on the day the GitLab acquisition news surfaced. |
4. Contextual Fundamentals
- Sector: Information Technology.
- Primary Exchange: Nasdaq.
- Currency: USD.
- Key Products: Authentication, authorization, devops score, audit, and value‑stream management.
- Global Presence: GitLab’s platform serves customers worldwide.
5. Outlook
While the stock’s intraday volatility was largely driven by speculation, the fundamental metrics—market cap, revenue streams, and product portfolio—remain steady. Investors will likely monitor Datadog’s formal communications and any regulatory filings for clarity on the acquisition’s viability. In the absence of definitive progress, the stock is expected to trade near its recent close, barring new developments.
