Today, I provide stock market analysis on UiPath IPO and UiPath stock ($PATH stock). The UI Path IPO date is not currently known; however, the Robotic Process Automation (RPA) disrupter is expected to IPO in the first half of 2021. Fast-growing robotic process automation startup UiPath Inc. is setting its sights on Wall Street after filing confidential paperwork for an initial public offering that will likely come in the first half of 2021.
Should you buy UiPath stock when it launches its IPO? Is UiPath a top growth stock for 2021?
I also discuss Blue Prism stock OTCPK : BPRMF.
The RPA market: "RPA, in simplest terms, is a software that helps automate repetitive and tedious desk work, saving money and time. Human staff can be reallocated to more higher value tasks that can generate more benefit to the business - or be replaced. It basically works like a macro on Excel but requires limited programming skills. The software is termed 'non-intrusive', as it works without causing disruption or any need for system integration work with your existing IT infrastructure - this is quite an attractive idea for firms running legacy systems that would be expensive to replace, like in banks and insurance companies. Despite what sounds like a high value-add piece of software, RPA is technically not that difficult to develop. Also, if you need cognition (thinking) behind your business process, artificial intelligence (AI) may be a better alternative. Nowadays, RPA and AI in its various forms are being offered as complementary solutions." In December, UiPath confirmed confidentially filing for an IPO that Bloomberg sources said could be valued at above $20B. At the time, CNBC reported that the company had about $360M in annual revenue with more than 6,300 customers, including Amazon and Verizon. UiPath's AI-backed Automation Platform is meant to "automate millions of repetitive, mind-numbing tasks for business and government organizations all over the world, improving productivity, customer experience and employee job satisfaction." Gartner expects worldwide robotic process automation software revenue to reach nearly $2B this year (up 20% Y/Y) and grow at double-digit rates through 2024. “The key driver for RPA projects is their ability to improve process quality, speed and productivity, each of which is increasingly important as organizations try to meet the demands of cost reduction during COVID-19,” said Fabrizio Biscotti, research vice president at Gartner. Microsoft (MSFT) has made a strong RPA push in recent years, adding the capabilities to its Power Automate solution in 2019 and acquiring RPA startup Softmotive early last year. In July, IBM (NYSE:IBM) acquired Brazilian RPA startup WDG Automation. In December, SAP (NYSE:SAP) launched its Intelligent Robotic Process Automation solution. UiPath also competes with Blue Prism (OTCPK:BPRMF). In a recent bullish call, Seeking Alpha contributor Karreta Advisors recommended buying Blue Prism ahead of the UiPath IPO, seeing Blue Prism as "valued at a 50% discount to where UiPath is likely to list on a prospective Price to Sales multiple."
Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.
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