CRM - UiPath: Execution Is Key Amid Tight Macros And Gen AI Disruption
2024-07-02 09:12:51 ET
Summary
- UiPath stock is down 34.6% since April when I last covered it after profit guidance was slashed during the first quarter of fiscal 2025 financial results.
- The change in management and addressing execution issues are positive.
- However, it is not a buying opportunity due to Gen AI challenges, competition, and unfavorable macroeconomic conditions.
- Amid all these AI talks, it is important to understand that innovation can be disruptive to software companies with an established moat if they cannot rapidly adapt, or demonstrate agility.
- For UiPath, it is not only important to execute well but also in a profitable manner.
Since I last covered UiPath Inc. ( PATH ) stock in my April 24 piece entitle d “A Hold Based on Demystifying the AI Hype (Rating Downgrade)”, it is down by 34.57% as shown in the chart below, and is trading around $12.9....
UiPath: Execution Is Key Amid Tight Macros And Gen AI Disruption