What's Wrong With UiPath's Stock?

Motley Fool01-08

UiPath stock had a brutal year in 2024 after it lost nearly half its value. The company's growth rate has been slowing even as businesses have been spending more on artificial intelligence. ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat's Wrong With UiPath's Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-08 18:53 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2025/01/08/whats-wrong-with-uipaths-stock/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>UiPath stock had a brutal year in 2024 after it lost nearly half its value.\n\n\n\n\n\n\n\nThe company's growth rate has been slowing even as businesses have been spending more on artificial intelligence.\n\n\n\n...</p>\n\n<a href=\"https://www.fool.com/investing/2025/01/08/whats-wrong-with-uipaths-stock/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2357305700.SGD","symbol_name":"Allianz Global Artificial Intelligence ET H2-SGD","start_time":0,"source_url":"https://www.fool.com/investing/2025/01/08/whats-wrong-with-uipaths-stock/","article_id":"2501728726","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2501728726","pubTimestamp":1736333580,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"UiPath stock had a brutal year in 2024 after it lost nearly half its value.The company's growth rate has been slowing even as businesses have been spending more on artificial intelligence.Its losses have been expanding and profitability remains a big question mark.Artificial intelligence  has been a hot investing theme over the past couple of years. Companies involved with AI have been some of the best investments to own -- for the most part, anyway. One stock that has been underwhelming despite its focus on AI is UiPath . Last year, the stock plummeted 49%. Over the past three years, it's down a staggering 62%. Those aren't the types of returns you might expect for a business that's focused on automating tasks and which should be the type of stock investors are bullish on these days.So what's wrong with UiPath, and why isn't it doing better?","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0094547139.USD":"abrdn SICAV I - GLOBAL SUSTAINABLE EQUITY FUND \"A\" (USD) ACC","LU2764263039.SGD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (SGDHDG) ACC","BK4532":"文艺复兴科技持仓","LU1366192091.USD":"ALLIANZ US EQUITY PLUS \"AM\" (USD) INC","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU1235295455.SGD":"Fidelity Global Multi Asset Growth & Income A-ACC-SGD","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0082616367.USD":"摩根大通美国科技A（dist）","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU1670710588.SGD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (SGD) ACC","LU0124676726.USD":"AB SICAV I - SUSTAINABLE US THEMATIC PORTFOLIO \"A\" (USD) ACC","LU1037948897.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (HKD) INC","LU1868837300.USD":"CT (LUX) I AMERICAN FUND \"9\" (USD) ACC","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","LU1934455277.USD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"AD\" (USD) INC","LU2463028550.USD":"AB SICAV I AMERICAN MULTI-ASSET PORTFOLIO \"A\" (USD) ACC","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","LU2023250843.SGD":"Allianz Thematica Cl AT Acc H2-SGD","LU0081259029.USD":"UBS (LUX) EQUITY FUND - TECH OPPORTUNITY \"P\" (USD) ACC","LU2275660780.HKD":"SCHRODER ISF GLOBAL CLIMATE CHANGE EQUITY \"A\" (HKD) ACC","LU2592432038.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"A\" (USD) ACC","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","LU1633808545.USD":"ALLIANZ GLOBAL EQUITY GROWTH \"AT\" (USD) ACC","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU1868836591.USD":"CT (LUX) I AMERICAN \"1U\"(USD) ACC","IE0009G5SDU7.USD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (USD) INC","LU0689626769.HKD":"AB SICAV I - SUSTAINABLE US THEMATIC PORTFOLIO \"A\" (HKD) ACC","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0215105999.USD":"SCHRODER ISF GLOBAL EQUITY \"A\" ACC","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","PATH":"UiPath","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","LU0861579265.USD":"联博低波幅策略股票基金A","LU1046421795.USD":"富达环球科技A-ACC","LU0347712357.USD":"BNP PARIBAS GLOBAL ENVIRONMENT \"C\" (USD) ACC","LU0251132253.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) ACC","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","LU2362541273.HKD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (HKD) ACC","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU2764262908.HKD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (HKD) ACC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","MSFT":"微软"},"translate_title":"UiPath的股票出了什么问题？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PATH":1,"MSFT":0.9},"content_text":"UiPath stock had a brutal year in 2024 after it lost nearly half its value.\n\n\n\n\n\n\n\nThe company's growth rate has been slowing even as businesses have been spending more on artificial intelligence.\n\n\n\n\n\n\n\nIts losses have been expanding and profitability remains a big question mark.\n\nArtificial intelligence (AI) has been a hot investing theme over the past couple of years. Companies involved with AI have been some of the best investments to own -- for the most part, anyway. One stock that has been underwhelming despite its focus on AI is UiPath (PATH -4.42%). Last year, the stock plummeted 49%. Over the past three years, it's down a staggering 62%. Those aren't the types of returns you might expect for a business that's focused on automating tasks and which should be the type of stock investors are bullish on these days.So what's wrong with UiPath, and why isn't it doing better? I'll look at why investors aren't that thrilled with the business and whether it could make for a good contrarian pick this year.A look at UiPath's fundamentals uncovers multiple issuesA good place to start evaluating a stock is by looking at its earnings report. Its financials can tell you how well the business is growing and if it's doing so profitably.The good news for UiPath is that the business is expanding, but not at a terribly fast rate. The chart below, which shows UiPath's growth rate, isn't what you'd expect to see, given that companies have been investing more into automation and AI in recent years.PATH Operating Revenue (Quarterly YoY Growth) data by YChartsThis leads me to believe that before there was ChatGPT and all sorts of AI services helping automate day-to-day processes, UiPath's business stood out more than it does today when there are many similar types of products available. Microsoft's Copilot, for example, offers to help automate processes for Windows users easily. As a result, the demand for UiPath's solutions, which also aim to help automate processes, may not be as strong as it was before.Another issue is a lack of profitability. Through the nine-month period ending Oct. 31, 2024, UiPath's operating loss totaled $196.2 million and increased by 9% from the same period a year earlier. If the business is expanding but doing so while needing to spend more aggressively, that's not a great sign that its products and services are selling themselves. 2025 may not be a better year for UiPathUiPath is focusing on many areas that other businesses are already in these days. For example, it sees an opportunity in AI agents and developing apps that can work with agents. Here again, however, there is a potential overlap between Microsoft's offerings and Salesforce, which is also aggressively investing in AI agents.Without a way to differentiate itself from these other competing products and services, UiPath may find it difficult to win over customers from larger tech companies that can already leverage their existing user bases, not to mention vast resources, to grow their sales.There simply may not be enough money on AI-related expenditures for businesses to spend on all these different AI solutions, which could make it difficult for UiPath to convince growth investors that it's still a good buy. Research company Gartner has already raised flags by saying that as many as 30% of generative AI projects may be abandoned this year as businesses struggle to justify the expenses. UiPath could be competing against some big companies for a potentially smaller pool of clients this year.Should you take a chance on UiPath stock today?UiPath's stock is trading at an estimated 30 times next year's profits, according to analyst expectations. However, I'm doubtful about whether the company will be profitable next year, given its current trajectory. With a slowing growth rate, that would still be a hefty earnings multiple to pay for a business whose solutions may become less competitive as there are more AI-related products available in the future.With a lot of uncertainty around the business, including whether it can turn a profit and how it will be able to compete against some large tech giants, UiPath isn't a stock I'd invest in today.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2501728726"}