10 Worst Cloud Stocks To Buy According to Short Sellers

4. UiPath Inc. (NYSE:PATH)

Short % of float: 6.73%

Number of Hedge Fund Holders: 29

UiPath Inc. (NYSE:PATH) is a global software company specializing in robotic process automation (RPA) that automates repetitive, rule-based tasks, enabling human workers to focus on more complex, strategic work. Its Automation Cloud offers a cloud-based solution with quick deployment, scalability, and minimal maintenance.

Even amidst significant short interest, UiPath Inc. (NYSE:PATH) delivered strong financial results in Q2 of FY25, exceeding guidance across key metrics. The company’s ARR grew by 19% year-over-year to $1.551 billion, driven by $43 million in net new ARR. Cloud ARR saw impressive growth, increasing by 65% to surpass $850 million. Additionally, total revenue for the quarter reached $316 million, a 10% rise from the previous year, while non-GAAP adjusted free cash flow came in at $49 million.

In response to the strong Q2 performance, Evercore ISI raised its price target to $16, maintaining an In Line rating on PATH. BofA Securities also increased its price target to $18 following the results.

According to Insider Monkey’s analysis of hedge fund portfolios from Q2 2024, 29 out of 912 hedge funds held shares in UiPath Inc. (NYSE: PATH). The largest shareholder was Catherine D. Wood’s ARK Investment Management, with holdings valued at $377.17 million.