Could UiPath Stock Help You Become a Millionaire?
UiPath (NYSE: PATH) became one of the largest software initial public offerings (IPOs) ever upon its public debut on April 21, 2021. The robotic process automation (RPA) software developer priced its stock at $56, but it closed at $69 on its first day and rallied to its all-time high of $85.12 on May 24, 2021. At its peak, UiPath had an enterprise value of $41.3 billion -- a whopping 46 times the revenue it would actually generate in fiscal 2022 (which ended in January 2022).
But today, UiPath only trades at about $19 per share, with an enterprise value of $8.8 billion. The bulls rushed for the exits as macroeconomic headwinds curbed its growth and rising interest rates popped its bubbly valuations. But after that steep drawdown, UiPath's stock now looks more reasonably valued at 7 times this year's sales -- and Cathie Wood's Ark Invest continues to accumulate more shares of this out-of-favor stock for its exchange-traded funds (ETFs).
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Source Fool.com
