Overview
- An unnamed-source report on Street Insider said Datadog is considering an offer above $60 per share for GitLab and is working with Morgan Stanley on financing.
- GitLab shares jumped about 10% to close at $48.27 after the report, outpacing a broader market decline.
- GitLab and Datadog have not commented on the report, which follows Reuters’ 2024 coverage that GitLab explored a sale and that Datadog had shown interest.
- Wells Fargo recently initiated coverage at Equal Weight with a $50 target, citing go‑to‑market transition risks and near‑term visibility concerns.
- Morgan Stanley maintained an Overweight rating and lifted its target to $60, while coverage describes GitLab as an AI‑powered DevSecOps platform used by over half of the Fortune 100 and claiming roughly 50 million registered users.