RGAIA Bets on GitLab (GTLB) for Its AI-Driven Growth Potential

RGA Investment Advisors has included GitLab Inc. (GTLB) in its Q2 2026 investment letter due to the company's role in AI-driven software development. GitLab offers DevSecOps services and Git management for enterprises. The investment firm believes that AI is enhancing demand for GitLab's offerings, but there are concerns about the potential for reduced employees in technical roles, which could negatively impact growth.

Currently, AI revenues constitute only a small part of GitLab's earnings, but the company anticipates significant growth in the future. GitLab's valuation appears attractive, with a price-to-sales ratio of about 4x, an EV to sales ratio around 20x, and a free cash flow yield exceeding 5%. Despite being excluded from the list of the 40 most popular stocks among hedge funds, GitLab Inc. was held by 50 hedge fund portfolios at the end of Q2 2026.