3 Key Reasons UiPath Is Our Favorite 'Second Layer' AI Play

PropNotes
7.43K Followers
(11min)

Summary

  • UiPath's share price has plummeted since IPO, but we see it as a key AI winner for 2025 and beyond.
  • PATH's RPA 'ai agents' automate more business processes than ever, making it indispensable despite ChatGPT & genAI's rise.
  • The total addressable market for PATH's solutions is massive, with significant cost-saving potential for businesses across various sectors.
  • Despite PATH's negative net margins, the company's high gross margins and expected revenue growth position it well for future operational leverage and profitability.
  • We rate PATH a 'Strong Buy'.

Money factory

J Studios

If you've been an investor in UiPath (NYSE:PATH) for any length of time, then you have our sympathies.

Since IPO, this relatively unknown tech company has essentially traded straight down, from the initial few sessions in the $60 - $80 range, to

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PATH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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