Gitlab - Githubs Top Competitor

I am currently looking at a possible play for Gitlab (GTLB). This stock went public on October 12th of this year. The play is earnings which is on December 6th AH. This will be their first earnings since going public. This is a top competitor of Github, which was acquired by Microsoft back in 2018 for 7.5 billion. As of today, Gitlab has a market value of 12 billion. Almost double the value of GitHub at time of acquisition. I believe at this moment, it is overvalued. Going into earnings, the estimates are expecting an EPS of -.48 and revenue of 59.24mil. Last quarter, revenue was 58.1mil.

Unlike Github, who now operates within Microsoft. Gitlab depends on its own for growth. Gitlab not only has to worry about itself, but also very tough competition in their market. Github still being the main choice and top competitor in the market. Gitlab is free to users but uses sales and marketing to change users to paid customers. This has increased and widened the net loss.

I do believe this stock is overvalued at this time. I am very bearish going into the earnings. I am worried about the low average volume and it being the first earnings since going public. I am still very new and learning as I go, but I wanted to try my hand in my first DD. I appreciate the criticism and will take all notes to become a better trader, so be as harsh as needed. More research must be done, but I am looking at playing some January puts going in.