Key insights
- The author initiated a small position in PATH (UiPath) after a significant pullback, citing reset expectations and a shift from hyper-growth to mid-teens revenue growth. The investment is based on the potential for a slow rebuild if execution improves, rather than expecting rapid gains. This reflects a cautious, value-oriented approach to a stock that has fallen out of favor, suggesting a mildly positive, albeit limited, influence on US equities.
I started adding to PATH after the recent pullback. The stock has come down a lot from previous highs, and at current levels it feels like expectations have been reset quite a bit.
Revenue growth is still there, but it’s clearly not the hyper-growth story it once was. I think last year growth was closer to the mid-teens % range, which is solid, but not something the market gives premium multiples to anymore.
That’s kind of why I’m interested though. When a stock goes from “must own growth” to “nobody cares,” sometimes that’s where better entries show up.
I’m not expecting this to double anytime soon. This feels more like a slow rebuild story if execution improves.
Position is small and I’ll probably scale in over time rather than go all-in.
Anyone else looking at PATH here, or still avoiding it after the slowdown?
Not financial advice.