Like it or not, robots and artificial intelligence (AI) are changing how people work and conduct business. Enterprise automation software maker UiPath (NYSE:PATH) seeks to be a pivotal part of this revolution, and investors can participate in the change through a long position in PATH stock.
UiPath specializes in robotic process automation (RPA) software. This type of software can perform a wide range of defined actions. Examples include understanding what’s on a screen, identifying and extracting data, making keystrokes, navigating systems and so on.
This technology can readily be applied to cloud and cybersecurity applications. UiPath’s automation platform is valuable to businesses because RPA software can help make work processes more efficient, while also detecting and defending against cyberattacks.
UiPath asserts that this market opportunity is valued at more than $60 billion. So let’s explore this unique company and discover the potential that it holds for investors.
A Closer Look at PATH Stock
UiPath went public on April 21 with an initial public offering (IPO) price of $56.
That was above the expected price range of $52 to $54. Interestingly, this event made UiPath’s offering one of the biggest U.S. software IPOs in history.
PATH stock rallied 23% on its first day of trading, closing at $69. After this auspicious start, the share price continued to move higher, reaching a peak of $90 on May 28.
Folks who chased the rally were soon disappointed, as the stock sank in the summer and fell in the fall. As of mid-November, PATH stock was trading in the low $50s. So if you’ve been sitting on the sidelines or are just learning about this stock today, you may have a chance to take a position in it at a relatively low price point.
Blasting Through the Boundaries
Since UiPath is a tech-forward company, there’s constant pressure on it to upgrade its software. Fortunately, the company is effectively responding to this demand.
In fact, UiPath just introduced its latest product, with features to help customers move even further along on their automation journeys.
The updated product strengthens UiPath’s already robust core RPA solutions while also offering the benefits of cloud-native architecture.
And of course, UiPath didn’t forget to focus on cybersecurity. Through a partnership with CrowdStrike (NASDAQ:CRWD), UiPath is (according to its press release) the first in the industry to offer endpoint security for RPA.
UiPath Chief Product Officer Param Kahlon was clearly enthused about this new release, and its implications on the RPA space:
“By bringing adjacent new capabilities together into a single place and providing seamless integration between them, we can blast through existing RPA boundaries, dramatically expanding the playing field for developers, and multiplying and accelerating automation’s overall impact across the enterprise.”
Accelerating Human Achievement
Meanwhile, along with blasting, multiplying and accelerating, UiPath is also focused on monetizing. Specifically, the company just launched monetization opportunities for its partners, users, developers and contributors through the UiPath Marketplace.
Basically a web library, UiPath Marketplace organizes RPA content contributed by experts and practitioners from around the world. Currently, it comprises more than 1,300 reusable RPA listings.
Prices for the listings will be set by the contributing vendors, and UiPath will handle the payments, licensing and invoicing of monetized content for contributors. Kahlon, the company’s CEO, put the UiPath Marketplace monetization opportunities within a broader context of his company’s vision.
“Our mission is to accelerate human achievement, and with Marketplace monetization, we are multiplying our ability to get high quality automations to users everywhere faster so they can leverage them for their automation needs in real time,” Kahlon explained.
The Bottom Line
If UiPath is proving anything, it’s that the “rise of the machines” isn’t necessarily a bad thing. Automation and AI can enhance business processes while improving companies’ security.
And by leveraging this technology, UiPath is “multiplying and accelerating automation’s overall impact,” to quote Kahlon. So PATH stock is an intriguing investment in an essential, tech-forward niche market.
After all, why try to resist the robot revolution when you can profit from it?
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.