From Nasdaq: 2024-06-06 05:51:00

UiPath’s (NYSE: PATH) share price plummeted by about 35% after a disappointing first-quarter earnings report. The abrupt CEO dismissal and reduced outlook rattled investors, despite trading 56% below its peak in February. Wall Street analysts are now reevaluating whether UiPath is a viable stock to buy during this dip.

UiPath presented its fiscal Q1 results, leading to a lowered outlook for fiscal Q2 revenue and the full year. Competitor C3.ai’s accelerated growth highlights UiPath’s struggles. The sudden exit of CEO Rob Enslin further clouds the company’s future prospects. However, UiPath’s expanded partnership with Microsoft could aid in retention efforts.

Despite recent setbacks, UiPath generated positive free cash flow in the past year. With the stock trading around 20.5 times trailing free cash flow and showing potential for growth, long-term investors could benefit from purchasing UiPath shares now. The Motley Fool’s Stock Advisor team did not list UiPath among their top 10 picks but highlighted its potential for significant returns in the future.



Read more at Nasdaq: Down 57%. Is UiPath Stock a Buy on the Dip?