Market Insights: Revealing Top Stocks Live on Air
Market Insights: Revealing Top Stocks Live on Air
Taking a closer look at preshow notes
I’m going to be on TV!
Tomorrow, Thursday November 30th I’ll be on Schwab Network @ 10:20 am ET discussing the markets with Oliver Renick. Click the link to access LIVE.
Paying subscribers get exclusive access to show notes today:
PATH 0.00%↑ - UiPath Inc
Talking Points
UiPath provides Robotic Process Automation (RPA) solutions, helping businesses to automate all types of manual processes.
Mixed Expectations, Skewed Bullish - Market is prepped to drive up the stock
Notes
CEO Transition is going according to plan- founder lead Dan Dines transition to eternal optimist ex-Google Rob Enslin will lead operational strength
The adoption of a platform-based approach is paving the way for substantial growth, introduction of no-code solutions is expanding the user base significantly. Additionally, the robust financial position is highlighted by a strong cash holding of $1.8B last quarter.
Annual Recurring Revenue (ARR) has witnessed exponential growth in recent years, underscoring the company's rapid expansion. +88% sales growth since inception.
Long term staying power with runway and long term contracts with committed AI partners. Customers include 8 of the Fortune 10, 65% of the global 1000, and 70 Federal agencies.
+84% Gross Profit Margins. This margin indicates that for every dollar of revenue generated, 84 cents is gross profit (revenue minus the cost of goods sold). Such a high margin suggests the company is efficient in producing and delivering its platform.
Today’s option activity is implying high levels of volatility which means investors could see big moves in either direction. Highlighted in green is the slight tweak on the skew in the higher strikes. Traditionally, downside strikes have greater implied volatility than upside strikes. The dip implies call selling on the December 1st contract.
Looking back at the fundamentals, I am not sure why marketing and ad spend is so high at $165M for the quarter, feels like word should be out by now on what the company has to offer. Will listen in on the earnings call on any capital allocation shifts to deliver on pre-existing and expanding operations with current customers today.
What's an appropriate multiple for AI companies? 7x EV/Revenues or 18x?
Some competitors trade in a range of 10x - 19x EV/Revenue.
Earnings Reports
Revenue: Estimate $315M
EPS: Estimate: $0.07
Bottom Line: The most unloved of all the AI companies, over time we like strong operators like UiPath the chance to prove themselves.
Final Word
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This is not investment advice. Do your own due diligence. I make no representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information contained in this report. Any assumptions, opinions and estimates expressed in this report constitute my judgment as of the date thereof and is subject to change without notice. Any projections contained in the report are based on a number of assumptions as to market conditions. There is no guarantee that projected outcomes will be achieved.
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