Members who held onto their puts saw profits of 225% by playing the short side of this stock
LevelFields - an event-driven research platform - alerted its members on February 09, 2023 of a mass layoff event planned by GitLab (GTLB). Like many other tech companies, GitLab saw an influx of cash during the pandemic and over hired as they expected future growth.
As the macroeconomy has seen a bank run and mid-term impacts of inflation, bloated companies are experiencing a pullback in their valuations. And unprofitable companies like GTLB are having their valuations slashed as the cost of capital increases with rising interest rates.
Since LevelFields members were informed, GitLab has fallen by -32%, vastly underperforming the S&P 500 in the same time frame.
LevelFields alerted members on two occasions of future downward price movement after a mass layoff event for GitLabs. The first was in early February when Gitlab announced they were cutting 7% of their workforce, citing macroeconomic concerns.
GitLab fell 12% on the day, representing a prime opportunity for LevelFields members to short the stock or purchase put options. For those owning the stock, it was a sure sign to get out unscathed and save a lot of money
In early March, after the stock bounced back, the company announced a second round of layoffs. LevelFields sent the alert shortly after the announcement and the stock plummeted from there.
Members who held onto their puts saw profits of 225% by playing the short side of this stock.
GitLab Inc. and its subsidiaries specialize in software development lifecycle solutions. Their SaaS platform, GitLab.com, empowers users to create, review, and deploy code seamlessly. The company's range of tools includes GitLab CI for continuous integration and deployment, as well as Git repository management, code reviews, issue tracking, wikis, and activity feeds.
Moreover, GitLab Serverless enables enterprises to run serverless workloads on any cloud using Google's Knative.