Should Investors Buy the Dip on UiPath or Run Away?
Workplace automation company UiPath (NYSE: PATH) recently reported its fiscal 2022 fourth-quarter earnings, for the period ending Jan. 31. Investors punished the stock, sending it to new lows. UiPath burst onto the scene with a hot initial public offering (IPO) in April 2021, a time when the markets were euphoric.
The broader market has been shaky since the summer, and once euphoric markets have turned nervous, selling many growth stocks into the ground. Now down more than 70% from its high near $90, is UiPath just a victim of an irrational market, or are there deeper issues at the heart of the stock's struggles? I'll put the pieces together below.
The headline numbers in its 2022 fourth-quarter report didn't seem so bad. Revenue came in ahead of analyst expectations, growing 39% year over year to $290 million. Meanwhile, the company was profitable, posting non-GAAP earnings per share (EPS) of $0.05, again beating analyst estimates. So why did investors panic?
Source Fool.com
