Why UiPath Stock Went Up 30% in the First Half of 2023
Shares of work-automation software company UiPath (NYSE: PATH) went up 30.4% in the first half of 2023, according to data provided by S&P Global Market Intelligence. The S&P 500 was up 15.9% during this time, and UiPath actually dropped below this benchmark after reporting financial results for its fiscal first quarter of 2024. But the company is also seen as one way to invest in the artificial intelligence (AI) trend, which ultimately boosted shares to their market-beating performance.
To clarify, the market was feeling upbeat about UiPath after it reported financial results for its fiscal fourth quarter of 2023. It reported results on March 15, and the stock rallied. Then it reported first-quarter results on May 24 and the stock fell. That might be surprising considering fourth-quarter revenue was only up 7% year over year, whereas first-quarter revenue was up a more robust 18%.
That's a clue for investors. If first-quarter growth was better than fourth-quarter growth but the stock fell, then clearly the market is concerned with something other than revenue growth.
Source Fool.com
