Despite UiPath (NYSE: PATH) having excellent long-term prospects, many on Wall Street disliked the company's tepid revenue forecast for the current quarter that it gave in its first-quarter fiscal 2024 earnings report. As a result, the stock currently has 11.03% of its shares sold short.

Investors engage in a short sale by borrowing shares of a stock and selling them, expecting to repurchase them at a lower price in the future. You can calculate the percentage of shares sold short by dividing the number of shares sold short by the total number of available shares. When the percentage of shares sold short exceeds 10%, some consider it a sign of market bearishness on a stock.

However, if you are a contrarian investor, ignore the market's short-term bearishness and consider buying this stock for the long term at current prices. Here's why.

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Source Fool.com