In these very notes, we’ve made quite a few successful “buy the dip” calls over the past several weeks. These calls were directly from our flagship Innovation Investor research advisory’s portfolio (which, for what it’s worth, is soaring right now).

It all started in late February. We told you to buy the dip in AR leader Matterport when the stock collapsed after disappointing earnings. Since then, that stock has surged as much as 40% higher.

Days later, we said to buy the dip in data science expert Palantir. And that stock is up more than 30% since then. Shortly thereafter, we highlighted solid-state battery maker QuantumScape as a great buy on weakness. And it’s now up about 40%.

And today we’re going to make another “buy the dip” call. There’s yet another hypergrowth tech stock that has been crushed but looks to be ready for a big rebound.

Its name? UiPath — and we see it easily doubling over the next few months.

Here’s a deeper look.

The UiPath Stock Bull Thesis

Long-term, we’re exceptionally bullish on UiPath stock as the market’s highest quality pure-play on the Automation Revolution.

The thesis is simple.

UiPath is an enterprise software automation company that’s making AI-powered software robots to automate business processes.

The company’s core platform constitutes an army of software robots that leverage AI-based computer vision. This allows them to perform a vast array of actions as a human would when executing business processes. These actions include but aren’t limited to logging into applications, extracting document data, moving folders, completing forms, and updating databases.

These robots are deployed to complete such tasks. Throughout their lifecycle, they learn from and replicate workers’ steps to optimize workflow and complete tasks more quickly and cost-efficiently.

Essentially, UiPath is using AI to build software robots that efficiently automate mundane enterprise workflows.

UiPath Ushers in the Future of Work

Most things a human does can be modeled by data. Theoretically, anything that can be modeled by data can be understood by an algorithm and, therefore, completed by a robot. To that end, automated software can and will automate all human workflows in the long run.

To be sure, we are a long way away from that future, where robots run offices. But we are not a long way away from automation software and AI beginning to affect the modern enterprise.

Indeed, it’s already happening all around us.

There are platforms out there that automate the writing of articles and marketing materials. There are also tools that automate the creation of video content. Advertising is increasingly becoming automated by programmatic algorithms. Checking out from a store is an increasingly automated process, too. Not to mention, in California, robots are starting to make burgers and chips at various restaurants. And other machines are packing and sorting your Amazon orders at fulfillment centers.

The Automation Revolution has arrived.

UiPath is building the “picks and shovels” for this revolution. The company is developing the software algorithms at the center of all these automated technologies. And they’re the best in the world at doing so. For three straight years, Gartner has recognized UiPath as the leader in the robotic process automation industry.

In short, UiPath is the world’s leading supplier of critical automation technology that will reshape work over the next decade.

Is it any wonder why we’re so bullish on UiPath stock long-term?

This is an $11 billion company with a trillion-dollar opportunity. The long-term upside potential in UiPath stock is very compelling.

And at Innovation Investor, we only invest in stocks with enormous long-term upside potential. UiPath stocks fits the bill.

Short-Term Pain is a Long-Term Opportunity

Despite UiPath’s enormous long-term potential, the stock has been crushed recently. Most of that pain was inflicted last week after the company reported fourth-quarter numbers.

The numbers themselves were pretty good. Revenues rose 39%. Dollar-based net retention rate clocked in at 145%. Gross margins came in above expectations. Operating margins and cash flows were strong.

Overall, it was a solid quarter.

But UiPath spooked everyone with its fiscal 2023 guide. Specifically, management delivered an abysmal revenue guide. It’s expecting revenue growth to decelerate significantly from ~45% this year to just a hair over 20% next year.

That’s an ugly slowdown. Under normal circumstances, such a massive slowdown warrants a huge drop in the stock price.

But this isn’t a normal circumstance.

Long story short, UiPath has a lot of European exposure. About 30% of its revenues come from the region. And what’s happening in Europe right now? Yeah, the first hot war since World War II. Naturally, that’s creating immense geopolitical uncertainty. And amid all that volatility, European businesses aren’t spending as much money as they would otherwise.

With lower spending trends from ~30% of its customers, UiPath has seen its revenue growth rates slow significantly recently. Management is erring on the side of caution and assuming that these lower spending rates will persist through 2022. On that notion, they see the company’s revenue growth rate being cut by more than half this year.

Spooky, yes, but far from catastrophic. Specifically, there are two big reasons why we think this selloff is an opportunity.

Huge Opportunity in UiPath Stock Selloff

First, this is all near-term noise.

UiPath isn’t seeing lower demand for its products because enterprises don’t see the value of automation or its software robots. Rather, the company is seeing lower demand exclusively because of a war. The thing about wars, though, is that they always eventually end. And when they do end, things go back to normal. Therefore, this is a temporary demand headwind that says nothing about the long-term demand trends for UiPath. We believe they will remain vigorous.

Second, this new guide leaves plenty of room for upside surprise.

UiPath said this new guide is predicated on the idea that depressed enterprise spending in Europe will persist through 2022. That’s a very cautious and even bearish assumption. Geopolitical tensions in Europe already appear to be easing. And it looks somewhat likely that through the current peace talks in Turkey, Ukraine and Russia will reach some diplomatic resolution that at least temporarily pauses the war.

Therefore, it’s far more probable that geopolitical uncertainty wanes in the coming months and European enterprise spending rebounds. If so, then UiPath is likely to report numbers in fiscal 2023 that far exceed the guidance management just delivered.

In other words, the stock collapsed on an overly bearish guide that likely won’t come true.

We’ve seen this rodeo before. It usually ends with the stock rebounding significantly over the subsequent few quarters. We expect the same thing to happen with UiPath stock. We see a double by the end of the year.

But while 100% gains over a year are awesome, we think there are much bigger opportunities in the market at the current moment…

The Final Word on UiPath

I made a name for myself on Wall Street — and earned the title of the world’s No. 1 stock picker in 2020 — by doing something simple. I bought near-term dips in long-term winners.

It’s something I’ve done time and time again with enormous success.

In 2014, I told folks to buy Facebook stock. At the time, shares were reeling after investors questioned the validity of the company’s WhatsApp acquisition. The stock is up more than 400% since then.

In 2015, I said to buy the dip in Advanced Micro Devices when bankruptcy concerns were surrounding the company. That stock is since up a cool 8,300%.

In 2016, I had “buy-the-dip” calls on Amazon and Apple amid a broader tech market rout. In 2017, it was Axon, Shopify and Match. Then in 2018, it was The Trade Desk. In 2019, it was Roku, Plug Power and Nio. And in 2020, we had Spotify, Snap, and Pinterest.

All those stocks have gone on to rally 100%, 500% and even 1,000% or more since those calls.

You get the picture. My investing career has been defined by successfully buying the dips in long-term winners.

Buy the Dip

Right now I’m seeing some very compelling “buy the dip” opportunities.

UiPath stock is one such opportunity. But it is far from the only one. And it most certainly isn’t the biggest, either.

That title is reserved for a tiny, $2 stock that’s developing ground-breaking “forever battery” technology. It could flip the entire EV industry on its head and fundamentally reshape the world’s entire energy infrastructure.

Its potential is enormous — so big, in fact, that unlike UiPath stock, I can’t write its name in this post.

But I did recently give a presentation at the Hudson Theater in Southern California. And there, I shared this stock with a group of 60 people.

Now I’m going to pull back the curtains on that event to give you a front-row seat to what may go down as my best “buy the dip” call ever.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.