UiPath stock dropped 34% after Q1 earnings beat estimates, CEO resignation and lowered guidance.

From Nasdaq: 2024-06-03 07:20:00

UiPath (NYSE: PATH) stock plummeted 34% after Q1 earnings beat estimates, with revenue up 16% at $335 million. However, the company lowered its full-year guidance and CEO Rob Enslin resigned, causing its worst single-day drop. Declining revenue growth could be due to macroeconomic headwinds and competition.

Enslin’s abrupt departure raised concerns as UiPath faces challenges in reaccelerating growth. The company’s previous investments impacted margins and agility, with Dines returning as CEO. Future outlook depends on integrating generative AI tools and addressing leadership disruptions. The stock, now priced at four times sales, may not be a value play yet.

Should investors consider UiPath? Motley Fool’s Stock Advisor didn’t rate it in their top 10 picks, emphasizing other potential growth stocks. The service’s blueprint has considerably outperformed the S&P 500 since 2002. UiPath’s outlook remains uncertain, warranting caution and a clearer path for long-term growth.



Read more at Nasdaq: Is UiPath Stock a Buy Now?