2024-04-24 07:16:25 ET
Summary
- UiPath's stock has risen by over 50% since the introduction of Open AI's ChatGPT and is also overpriced, which could indicate AI hype.
- The company's profitability grade is strong, but, it is not growing earnings at the same pace as revenues, indicating a competitive market.
- UiPath is a process automation company using traditional Machine Learning, but Generative AI could pose a risk if its software developer clients switch to chat-based tools.
- To address the issue, the company has also developed Gen AI-based Autopilot, but investors must first wait for its commercialization.
- With all these talks about artificial intelligence, it is important to demystify the topic, namely distinguishing between Gen AI and traditional flavors of technology like Machine Learning or ML.
UiPath Inc. ( PATH ) was trading at around $18.75 at the time of writing and is rated as buy by analysts at Seeking Alpha and Wall Street. After a long streak of losses, the company managed to deliver GAAP operating profits for the fourth quarter of 2024 (Q4) and boasts a strong growth grade as shown below....
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For further details see:
UiPath: A Hold Based On Demystifying The AI Hype (Rating Downgrade)