UiPath Down 30% On Thursday - What's Going On?
Portfolio Pulse from Nabaparna Bhattacharya
UiPath, Inc. (NYSE:PATH) shares dropped 30% in premarket trading after announcing CEO Rob Enslin's resignation, effective June 1, 2024, with founder Daniel Dines set to return as CEO. The company also reported increased deal scrutiny, lengthening sales cycles, and a widened quarterly operating loss. Despite beating earnings and sales estimates, UiPath lowered its fiscal year 2025 revenue outlook, causing investor concern.
May 30, 2024 | 10:00 am
News sentiment analysis
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NEGATIVE IMPACT
ARK Innovation ETF (NYSE:ARKK), which holds UiPath shares, may see a negative impact due to the significant drop in UiPath's stock price.
As ARKK holds UiPath shares, the significant drop in UiPath's stock price is likely to negatively impact the ETF's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), which holds UiPath shares, may see a negative impact due to the significant drop in UiPath's stock price.
As ARKQ holds UiPath shares, the significant drop in UiPath's stock price is likely to negatively impact the ETF's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
UiPath shares fell 30% in premarket trading following the announcement of CEO Rob Enslin's resignation and a lowered fiscal year 2025 revenue outlook. The company also reported increased deal scrutiny and a widened quarterly operating loss.
The resignation of the CEO and the lowered revenue outlook are significant negative factors. Additionally, increased deal scrutiny and a widened operating loss contribute to the negative sentiment.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEUTRAL IMPACT
Alphabet Inc. (NASDAQ:GOOGL) is mentioned in relation to Rob Enslin's previous role at Google Cloud. However, the news is not expected to have a significant impact on Alphabet's stock.
Alphabet is mentioned only in the context of Rob Enslin's previous role. This news is not expected to have a significant impact on Alphabet's stock.
CONFIDENCE 100
IMPORTANCE 10
RELEVANCE 10