The stock market rebounded on Monday, after a tough week, as investors braced for the release of major earnings this week.
Overall, S&P 500 was up 0.9% to 5,011, while NASDAQ increased 1.1% to 15,451.
Tweet of the Day
Demand Increases for Eli Lilly’s $LLY #Mounjaro With Delays in Filling Orders
🧵 pic.twitter.com/Gnf3DQ5VNY
— SchoolofHardStocks (@SchoolHardStock) April 21, 2024
Chart of the Day
Here is the one-year chart of GitLab (GTLB) as of March 26, 2024, when the stock was at $59.
GitLab stock fell from from $74 to $59 the day after last quarter’s earnings as management lowered 2024 guidance. This is primarily because of the weak FY2025 revenue guidance that fell below analysts’ expectations and also made worse by management’s remarks that it is no longer guiding conservatively. Estimated 2024 revenue declined slightly from $737 million to $731 million. On the other hand, 2024 EPS estimates declined from $0.35 to $0.22. Some of this decline was due to a company-wide retreat.
As such, the stock probably will not go anywhere until we see next quarter’s earnings (or get an early warning). In the meantime, the stock sells for a reasonable valuation and David Sharek, Founder of School of Hard Stocks, thinks it is undervalued now.
GTLB is on the radar for the Growth Portfolio.
