Breaking News
Investing Pro 0
💎 Access the Market Tools Trusted by Thousands of Investors Get Started

UiPath Stock Skyrockets Amid AI Hype: What’s Behind the Rally?

By (Francesco Casarella)Stock MarketsJun 06, 2023 06:21AM ET
UiPath Stock Skyrockets Amid AI Hype: What’s Behind the Rally?
By (Francesco Casarella)   |  Jun 06, 2023 06:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
  • UiPath stock has undergone an impressive rally
  • But is it based on sound fundamentals or just pure speculation?
  • Let's dig deeper into the company's financials and find out

Thanks to the AI hype, UiPath (NYSE:PATH) surged 52% this year so far. And in a record-breaking week, it broke above the $17.60 resistance level formed last year.

UiPath Daily Chart
UiPath Daily Chart

But do the stock's fundamentals support such a rally, or was it merely fueled by the AI frenzy and speculation?

Let's try and find out using InvestingPro. You can analyze stocks of your choice yourself, sign up and start your free trial today!

What Does the Company Do?

UiPath provides an end-to-end automation platform offering a range of robotic process automation (RPA) solutions, primarily in the United States, Romania, and Japan. The company offers a suite of interconnected software to build, manage, execute, engage, measure, and govern automation within the organization.

Its platform combines artificial intelligence with desktop logging, back-end extraction of human activity and system logs, and intuitive visualization tools that allow users to discover, analyze, and identify processes to be automated in a centralized portal; offers low-code development environments that allow users in an organization to create attended and unattended automation without any prior coding knowledge.

It also offers centralized tools designed to manage, test, and deploy automations and ML models across the enterprise; enables customers to manage long-running processes that orchestrate work between robots and humans; enables users to monitor, measure, and predict the performance of automation in the enterprise; and helps enterprises ensure compliance with corporate standards.

In addition, the company provides maintenance and support for its software and professional services, such as training and implementation, to facilitate the adoption of its platform. The company operates in the banking, healthcare, financial services, and government sectors. UiPath Inc. was founded in 2005 and is headquartered in New York, New York.

Fundamentals at a Glance

To begin, we can access the financial statement history on InvestingPro to gather valuable insights such as:

The revenue has trended up over time, and profit margins of over 80% have remained steady.

Revenue Trend
Revenue Trend

Source: InvestingPro

Gross Profit Margin Trend
Gross Profit Margin Trend

Source: InvestingPro

The growth rate of EPSd (diluted earnings per share) is still negative because most of the expenses come from solid marketing activity that impacts 70% of turnover at the moment (a growing company typically has high marketing costs).

Balance Sheet and Cash Flows

Between cash and short-term investments, UiPath has about 1.8 billion and total current assets of around 2.3 billion. Compared to current liabilities of 0.6 billion, this suggests an excellent short-term balance.

The Debt to Equity ratio is also excellent here, practically 0.

As expected, the company has reported positive cash flow for the first quarter. The company released the following data recently:

UiPath Financial Data
UiPath Financial Data


When evaluating a growing company, it is crucial to consider its future potential rather than comparing it to mature stocks. In my opinion, two key aspects stand out:

  • 127% customer retention rate
  • Prevalence of recurring revenues (subscription services).

These two points above represent a business model that should ensure sustainability in the medium to long term, allowing the company to continue to do well in two areas (robotics and AI) that have double-digit growth prospects in the coming years.

I believe discussing Fair Value for this company is insignificant currently, despite projections of a $19 price. If the trend continues, the future target range could be $22 to $27.

It's important to note that small-cap growth companies often experience significant volatility, as seen in this stock's recent post-quarterly performance, as it dipped 17% before recovering.

InvestingPro tools assist savvy investors in analyzing stocks. By combining Wall Street analyst insights with comprehensive valuation models, investors can make informed decisions while maximizing their returns.

Start your InvestingPro free 7-day trial now!

Disclaimer: The author owns UiPath shares. This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counseling, or investment recommendation. As such, it is not intended to incentivize the purchase of assets in any way. I want to remind you that any asset is highly risky and evaluated from multiple points of view; therefore, any investment decision and the associated risk remain with the investor.

UiPath Stock Skyrockets Amid AI Hype: What’s Behind the Rally?

Related Articles

UiPath Stock Skyrockets Amid AI Hype: What’s Behind the Rally?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email