Even as many tech stocks soared, Sept. 7 was a dreadful day for investors of robotic process automation specialist UiPath (NYSE: PATH) . The share price, already significantly down from its $85 peak from last year, shed 11.2% in a single trading session.
Adding insult to injury, Mizuho immediately downgraded UiPath, with analysts claiming they hadn't "yet seen enterprises prioritize automation in a potential recessionary environment." Fair enough, but perhaps investors have gone too far in pricing in worst-case scenarios and writing UiPath off as another growth stock representing an unprofitable business venture. Caution is certainly advised, but astute investors might consider three points before crossing UiPath stock off their tech-focused buy-on-the-dip wish list.
You wouldn't know it from the sell-off, but UiPath, whose software uses bots to automate business processes, actually beat Wall Street's fiscal 2023 second-quarter estimates . Analysts were expecting quarterly revenue of $230.7 million and an adjusted loss of $0.11 per share. However, UiPath handily beat those forecasts with revenue up 24% year over year to $242.2 million and a loss of $0.02 per share.
For further details see:
3 Things About UiPath That Smart Investors Know