You Won't Believe What the New UiPath CEO Just Said | PATH Stock Analysis

After an abrupt resignation, the UiPath founder has taken over as CEO.
Fool.com contributor and finance professor Parkev Tatevosian discusses what the comments could mean for UiPath stock investors.
A portion of this video is sponsored by The Motley Fool.
Visit fool.com/parkev to get access to my special offer.
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[@anwaralexander3035]

Thank you for the update, will continue to hold this stock. Only one of several I have and I like knowing the founder is the CEO. He should have a clear sense of direction as to where he wants the company to go.

[@parkevtatevosiancfa9544]

Thanks for sharing

[@SadDays-21]

But you dont understand that 1) Training a smaller and specific set of data is (relatively) easy!! 2) Tons of companies can provide training on specific data sets (such as companies' own). This is not something that only UIPath can do. ChatGTP is a piece of flashy junk for now. But even MSFT's new Surface laptops can train on specific data sets --the person's own!! Training on specific data sets is NOT a new WOW concept or a major technical advance in AI (like solid-state battery for EV or CRISP gene editing in pharmaceuticals). Rather, everyone who has some basic engineering training on AI understands this and can manage it. One may be limited by access to larger set of data but not your corporation's own data. (FYI, SNOW & PLTR etc offer processing servives for corperation's data, making them ready for AI analysis. ) So, any tech companies can do this training within context --what makes UIPath better? NVDA actually sends off its own software engineers to smaller corporation customers to help them process their data, making them ready for AI training/interpretation!! What is UIPath's moat? In short, any larger corporations could easily offer this Context feature if they desire. Before, UIPath was the only one (or few) using generative AI to automate some office works. But now that this concept has been popularized by MSFT or NVDA or OpenAI, tons of tech companies are rushing into the space. What is UIPath's moat in this competitive environment? Yes, UIPath claims that it produces higher accuracy. But it is not providing any independent standards to support this vague claim. More accurate than who? I am sure any company can come up with some tests where their results are more accurate than another corp. In contrast, when CRWD brags, it brags with awards on security service from organizations where the judging panels are technical experts. Or it specifically states that a company protected by MSFT's security service was hacked and the issue was not resolved for how long, and so they were called into fix the problem within how long! Now, these claims reap the skin off MSFT and will draw the attention of the CTO of big cooperation customers or investors. Not vague statements like our security service is more robust--yeah right! I think either anti-trust needs to reign the big corps in, or UIPath needs to merge with a bigger corporation... so that its automation service is offered as part of a bigger platform. Single unified access are welcomed by customers. At this point, I just dont see what is it that UIPath can do that other tech companies cannot come up with if they want to. I am not saying that UIPath will definitely lose the race. Not at all! Who knew in 1997 that Apple would have a huge turnaround in a few years while MSFT sank like the titanic under Steve Ballmer? And who would have thought that Satya could revive a big and dead giang like MSFT? Who knew 5 tears ago thatvTsla would make it or sank? Anything can happen. But it is certainly risky to make this company a top holding of one's portfolio. If one is young and can tolerate very high risk, sure, do whatever one likes. Otherwise, one should know that this stock is sinking for a good reason and know the risks involved, and allocate your bet according to your own risk-tolerance level. The competitive landscape changed when MSFT and OpenAI popularized generative AI.

[@rickhultgen7691]

What a well-reasoned, informative, and valuable comment! Thank you for bringing me much greater clarity and understanding before I consider investing.

[@kgar7836]

I second that reply! Great rational explanation.

[@edswen41]

I agree with you, its just the UIPath valuation is really cheap right now given that their balance sheet and revenue is still in good state. They are far away from bankruptcy and market cap has been slashed by 30%, i think it is a good buy in this are of price (10-13)

[@dvb1701]

Right. They don't necessarily need to be the next NVIDIA, with a huge, cornered market and a large moat to be a buy. They just need to be at a good valuation, relative to their upcoming growth. Not to say, there isn't a good amount of risk in buying this stock. There is.

[@heimes7625]

well said 😁😁

[@RajShah202]

Thank you for your continued support and encouragement ❤

[@michaelramsey3643]

I see it as a positive to have the founder back as CEO, but it's hard to know his level of commitment, or how long he will stay. I'm very tempted to open a small position in this price range, but I think I'll need more clarity on the commitment and effectiveness of management, before investing.

[@stevend.bennett427]

It’s a positive, to me, when the Founder returns to righten the ship; Jobs and Schultz being good examples.

[@dalepellerin]

PATH is a good example of just how fast a stock can drop. It’s important to choose stocks that have ‘shareholder value’ as a key tenet of their business strategy. What they say and how they say it is important.

[@SvH1975]

right, and even more important, never buy or hold ANY stock into an earnings call

[@SadDays-21]

​@SvH1975 I have held my NVDA, META, LLY, and ASML etc into all earning calls since early/mid 2023 and GOOGL, MSFT, AMD, and TSMC since end of 2022, and I had had no regrets. Did some of them fall after earning sometimes? Sure, but had I sold them before every earning call so, I would have missed out **a lot** more. Some of the biggest rises happened at earning call.

[@Grace-jm5xo]

Thank you very much Parkev for your immediate update !!!!

[@parkevtatevosiancfa9544]

My pleasure!

[@BobbyDon8]

I sold at $18.00, and then it went up to like 20 and I thought I made a huge mistake. Then the crash came, and I felt a lot better. 😄. But I bought back in the other day for $11.88. I was really lucky

[@sksharma826]

Underline business model is still strong and new CEO is founder also, I think he wants to put the company on the right track, might take some time, Holding for the long term. Thanks for the video. It reminds me( Micheal DEll ) of dell computer.

[@mzkhan93]

why did he leave in the first place ?

[@marianneleone3792]

Ark Invest (Cathie Wood) bought more than a million dollars worth of shares on Thursday.

[@60sekundenpolitik]

So we should probably sell now...lol

[@marcobergamini6859]

Thank you for the update Parkev 👍🏻

[@parkevtatevosiancfa9544]

You bet!

[@JohnEButton]

You said "Strong buy"?

[@kispumel]

Lets see where that big C wave down ends, I mean will it stop around 7-ish usd or 5? I also would not rule out 1.50 - 3 usd.

[@khookahfang8927]

What is ur view regarding smci now?

[@statementofcashflows]

Thank you for your appreciated research. Please can you give a video on HPE before earnings. Thank you

[@zhara2585]

I bought path the day before the drop. I figured its time.

[@normansteinmetz643]

Same here…

[@Prainnam]

Companies like Uipath, c3ai, upstart etc will struggle in short term but may benefit in long term .. competition in AI area will gonna be intense for sure so careful to choose companies for investment.

[@markhooper5822]

Looks good as at least it will come back to normal price from previous near 30 at a stage with the founder back better relations to buyers maybe work will pick up and break the 30 mark we are in a ai trend so automation looks more attractive as well

[@Cory-Money]

What did you end up buying PATH at bro?

[@anderson6379]

Thanks for covering

[@edwardstone9056]

Thanks!

[@patrickliao8576]

Thank you

[@parkevtatevosiancfa9544]

Welcome!

[@a.c.r.5386]

Easy to digest analysis. On PATH, the former CEO/founder is back. Recycling poor leadership does not bode well w/ this company.

[@glennsampayan2322]

Thank you!

[@parkevtatevosiancfa9544]

Welcome!

[@glennsampayan2322]

@@parkevtatevosiancfa9544 , Can you make a stock analysis on BKKT?

[@Inexpugnable007]

Saw a few vids, love that you state the pros and cons. Like a simplified SWOT.

[@BasedPajeet]

I have ui path at 11 dollars i am going to keep it for now

[@abood8858]

Thanks for this video Park, i am new to investing and watching your videos over the last few weeks has helped alot. I wanted to ask if you had any opinion on the larger cryptocurrencies like BTC and etherium. Do you think one should deviate to these and hold them long term or stick to something like vanguard instead?

[@kylepang5547]

Amazon is posing a major threat to UiPath. Amazon is ramping up its own robotic process software. And it won’t be long before Amazon pairs this new enterprise automation service with AWS, to offer clients an all-in-one solution. UiPath will be crushed by Amazon.

[@Rudy4759]

Or they can just buy UI-Path

[@miketreker944]

Thanks Parkev for your analysis and commentary.

[@parkevtatevosiancfa9544]

My pleasure!

[@dmxspark]

Love from India

[@jamiesmchen]

will you suggest to hold or buy?

[@nidusa1]

please do analysis of BARK airlines. might be a meme but why not do a fun stock analysis, I can just imagine all the jokes in comments already.

[@stevenyeo9881]

What u saying here is still alot of unknown facts. What exactly the change in sales strategy is key. In fact, all CEOs want sales to increase. Can he do that? Will see..

[@SometimesFishing]

Is it a buy, hold or sell??

[@subramaniansridhar8985]

Is your recommendation still a buy?

[@bybobby]

Buy DCA ! 👍🏼

[@EddieSerban]

Chat gpt is The biggest threat for them… and i’m talking about gpt sdk which is a killer in the area

[@Gold.Circle.]

Urgh

[@deadstone3991]

😂

[@patostefak442]

New CEO manipulated stock value. His statement was stupid

[@mzkhan93]

why?