10 Worst-Performing Growth Stocks in 2024

3. UiPath Inc. (NYSE:PATH)

Year to Date Gain as of October 28: -48.11%

Number of Hedge Fund Holders: 29

UiPath Inc. (NYSE: PATH) is a technology company that provides an end-to-end automation platform with a range of robotic process automation (RPA) solutions. Its solutions are mostly used to build, manage, run and govern automation within organizations. As a leading provider of robotic process automation, the company has been under pressure on concerns that RPA tools face an uncertain future amid proliferation of AI-based no-code tools that offer similar capabilities.

While the stock has shed about 48.11% in market value, its long-term prospects remain intact as it continues to use artificial intelligence tools to enhance its automation capabilities. The company is already leveraging artificial intelligence to strengthen task mining, document understanding and AI center orchestration.

A move by UiPath Inc. (NYSE: PATH) to reduce its full-year annual recurring revenue for fiscal 2025 to between $1.665 billion and $1.670 billion, below expectations of $1.725 billion and $1.730 billion, has also hurt the stock’s sentiments. Nevertheless, the company ended the second quarter with an annual recurring revenue of $1.551 billion, representing a 19% year-over-year increase.

Customers with annual recurring revenues (ARR) of $100,000 or more increased from 1,930 to 2,163 in the second quarter of fiscal 2025. Additionally, customers with ARRs of $1 million or more saw a 15.3% increase over the same quarter last year. Additionally, the AI automation company boasts of an attractive price to free cash flow of 22, affirming it is inexpensive for a software business that is growing at an impressive rate.

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 $377.19 million.