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Alliances With Cloud Leaders Will Set UiPath Stock in Motion

Ready to join the automation revolution? It’s coming whether you like it or not, and enterprise automation software maker UiPath (NYSE:PATH) is poised…

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This article was originally published by Investor Place

Ready to join the automation revolution? It’s coming whether you like it or not, and enterprise automation software maker UiPath (NYSE:PATH) is poised to be a major part of this movement. So, if you’re looking for a ground-floor opportunity, PATH stock seems like an obvious choice. Yet, shares have drifted down for the past five months.

Source: dennizn / Shutterstock.com

Judging from the dismal price action of PATH stock, one might conclude the company is in trouble. However, the evidence suggests that UiPath is doing well. In fact, it recently reported a 60% year-over-year increase in its annual recurring revenue for the second quarter. What’s more, overall Q2 revenue surged 40% from a year ago to $195.5 million.

Besides, at least two well-known cloud-focused businesses are willing to collaborate with UiPath to leverage the power of automation. To me, that’s a clear sign that PATH stockholders will have their day in the sun soon.

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 and made it one of the biggest U.S. software IPOs in history.

PATH stock shot up 23% on its first day of trading, powering its way up to a closing price of $69. The bullish momentum persisted for a while longer, with the share price reaching a peak of $90 on May 28.

Unfortunately, it was all downhill after that. UiPath’s share price fell over the ensuing months, hitting a low of $47.20 in mid-October. Today, PATH stock has managed to climb back above the $50 level, but it still sits more than 40% below its all-time high.

Momentum-focused traders no doubt see the glass as half empty given the bearish trajectory in the stock in recent months. But contrarian investors are likely to take a glass-half-full approach: If you liked UiPath when the share price was $90, and the company hasn’t changed fundamentally, then you should love it at $50 a share.

Breaking New Ground

Just to recap, UiPath’s software allows businesses to increase their efficiency by automating repetitive tasks. The software achieves this goal through robotic process automation (RPA). UiPath claims to be the world’s leading RPA software company.

RPA software can perform a wide range of defined actions. These include understanding what’s on a screen, identifying and extracting data,  implementing the right keystrokes, navigating systems and so on. This technology can readily be applied to cloud and cybersecurity applications.

Case in point, CrowdStrike (NASDAQ:CRWD) is collaborating to combine UiPath’s RPA software with the CrowdStrike Falcon platform. Hopefully, the end result will be more effective cyber threat hunting, investigation and remediation. The RPA software “robots” can help to detect and defend against all types of cyberattacks, from malware to sophisticated and stealthy nation-state attacks.

With this partnership, UiPath and CrowdStrike are breaking new ground as “the first RPA and Endpoint Security vendors to come together to extend endpoint security to RPA, enabling full visibility to enhance protection and speed of response,” according to the press release announcing the collaboration.

The UiPath-CrowdStrike alliance sounds like a win-win for all stakeholders, but it’s not the only cloud collaboration in the works.

Going Deeper Into the Cloud

UiPath recently announced a partnership with data cloud company Snowflake (NYSE:SNOW). The two companies are seeking to help organizations that are looking to move to the cloud, which is practically a necessity nowadays.

UiPath’s RPA software can help businesses in industries such as healthcare, financial services and insurance make the transition so they can store and analyze their data securely in the cloud.

UiPath Senior Vice President for Alliances and Business Development Dhruv Asher clarified how the partnership can provide value for a variety of businesses: “With this new partnership, UiPath and Snowflake will serve the growing market demand to enable our joint customers to accelerate analytics and automation at scale and succeed in their digital transformation initiatives.”

The Bottom Line on PATH Stock

As you can see, well-regarded companies are acknowledging and leveraging the transformative potential of UiPath’s RPA software. Perhaps Wall Street doesn’t appreciate the importance of this technology. They’ll eventually figure it out, or at least they’ll see the bottom-line benefits for UiPath and its clients and partners.

Until then, feel free to collect some shares of PATH stock, which won’t likely be available at a discount price for much longer.

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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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The post Alliances With Cloud Leaders Will Set UiPath Stock in Motion appeared first on InvestorPlace.


Author: David Moadel

Economics

New Zealand cash rates – the canary in the coal mine?

My son, Angus, ventured into the Sydney residential market at the beginning of the year acquiring a small apartment, with what I considered to be an enormous…

My son, Angus, ventured into the Sydney residential market at the beginning of the year acquiring a small apartment, with what I considered to be an enormous loan from one of the Big Four. At the time the fixed four-year home loan rate was around 1.95 per cent per annum. Today, the advertised rate has jumped 1.0 per cent per annum to around 2.95 per cent. This reflects the Australian four-year Government Bond yield moving up from 0.20 per cent at the beginning of 2021 to the current 1.32 per cent.

The likely response to this change from property buyers today is that a much higher proportion of their mortgage will be attributed to a variable home loan. This rate typically reflects the Reserve Bank of Australia’s (RBA) cash rate, and at 0.10 per cent per annum it is currently at a record low, and well below the “emergency low” of 3.0 per cent per annum implemented during the Global Financial Crisis (6 months to September 2009).

Across the ditch, the Reserve Bank of New Zealand (RBNZ) has raised its official cash rate for the second time in two months by 0.25 per cent to 0.75 per cent per annum to counter growing inflation, which hit 4.9 per cent in the September 2021 quarter, and is expected increase to 5.7 percent in the March 2022 quarter.

RBA vs RBNZ cash rate

Markets are currently pricing in five more 0.25 per cent increases by the RBNZ over the next twelve months to a targeted 2.0 per cent per annum. Will New Zealand be seen as a canary of the coal mine moment given inflation has become a global problem? Only time will tell, however if cash rates happen to jump by 1.5 per cent and this filters through into the rate for variable home loans. The tailwinds currently being enjoyed by asset owners (with debt) – close to nil interest rates – could easily become headwinds.

The US inflation figure for October 2021 hit 6.2 per cent, a 30 year high.  Selected CPI subcategories saw the following 12 month changes: Beef +24 per cent, gasoline +51 per cent, natural gas +28 per cent and used cars and trucks +26 per cent. The UK was not far behind, with an inflation rate of 4.2 per cent for October.

ds-us-inflation-2021-2

Global supply chain bottlenecks and shifting consumer demand from services to goods could well be transitory, but as the Founder of Bridgewater Associates, Ray Dalio, warns, “raging inflation” is eroding people’s wealth today – particularly those who have their money in cash.




Author: David Buckland

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Economics

Dow Jones, the S&P 500, and Nasdaq price forecast after sell-off on Friday

Wall Street’s three main indexes ended sharply lower on Friday as news of a new COVID variant worried investors around the world. The World Health Organization…

Wall Street’s three main indexes ended sharply lower on Friday as news of a new COVID variant worried investors around the world.

The World Health Organization (WHO) on Friday designated a new COVID-19 variant detected in South Africa, and a lot of people didn’t want to hold risk assets on Monday morning or are afraid of what that could look like Monday morning.

Markets are reacting negatively because it is unknown at this point to what degree the vaccines will be effective against the new strain and would it initiate new lockdowns around the world. David Kotok, chairman and chief investment officer at Cumberland Advisors, added:

All policy issues, meaning monetary policy, business trajectories, GDP growth estimates, leisure, and hospitality recovery, the list goes on, are on hold. The new strain may complicate the outlook for how aggressively the Federal Reserve normalizes monetary policy to fight inflation.

The new Omicron coronavirus is detected in Britain, Italy, Netherlands, Germany, Israel, Belgium, Botswana, Denmark, Hong Kong, and Australia for now.

Britain has already imposed travel restrictions on southern Africa, while the European Commission is considering suspending travel from countries where the new variant has been identified.

The upcoming week will be busy, and investors will pay attention to Fed Chair Jerome Powell and U.S. Treasury Secretary Janet Yellen’s appearance before Congress to discuss the government’s COVID response on November 30.

S&P 500 down -2.3% on Friday

 S&P 500 (SPX ) weakened by -2.3% on Friday and closed the week at 4,594 points.

Data source: tradingview.com

If the price falls below 4,500 points, it would be a strong “sell” signal, and we have the open way to 4,300 or even 4,200 points.

The upside potential remains limited for the week ahead, but if the price jumps above 4,650 points, the next target could be around 4,700 points.

DJIA down -2.5% on Friday

The Dow Jones Industrial Average (DJIA) weakened -2.5% on Friday and closed the week below 35,000 points.

Data source: tradingview.com

The Dow Jones Industrial Average remains under pressure as news of a new COVID variant worried investors worldwide.

The current support level stands at 34,500 points, and if the price falls below this level, the next target could be around 34,000 points.

Nasdaq Composite down -2.2% on Friday

Nasdaq Composite (COMP) has lost -2.2% on Friday and closed the week at 15,491 points.

Data source: tradingview.com

The strong support level stands at 15,000 points, and if the price falls below this level, it could be a sign of a much larger drop.

Summary

Wall Street’s three main indexes ended sharply lower on Friday after the news that the World Health Organization designated a new COVID-19 variant detected in South Africa. All policy issues go on hold currently, and investors will pay attention to the government’s COVID response on November 30.

The post Dow Jones, the S&P 500, and Nasdaq price forecast after sell-off on Friday appeared first on Invezz.







Author: Stanko Iliev

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Economics

Wind Power Becoming too Cheap for Industry to Sustain Itself

The price of generating wind power has gotten so low, that companies may soon be unable to invest in additional
The post Wind Power Becoming too Cheap…

The price of generating wind power has gotten so low, that companies may soon be unable to invest in additional technologies for the sector.

According to major turbine-making company Siemens Gamesa, the cost of wind power has recently dropped to such a low level that it can finally challenge the fossil fuel industry, mostly due to an abundance of investments in renewable energy. “What we’ve clearly achieved is that wind power is now cheaper than anything else,” said the company’s CEO Andreas Nauen as quoted by Reuters.

However, Nauen warned that “we shouldn’t make it too cheap,” because it could hinder the influx of additional investments in the green space. Across Europe, both wind and solar are substantially cheaper that natural gas, coal, and even nuclear power. And, with governments’ strong ambitions to adopt a climate friendly agenda, the demand for wind turbines has reached a record-high; but, the relatively lower prices and increased competition have also eroded away at producers’ margins.

“We have probably driven it too far,” said Nauen, adding that if prices continue to decline, the sector won’t be able to invest in further innovations. To make matters worse, accelerating global inflation for raw materials, coupled with supply shortages, also threatens to squeeze turbine makers’ margins. Moreover, governments around the world have begun eliminating generous wind subsidies in favour of more competitive contracts submitted by the lowest bids.

“We need to change auction systems in the future,” said Nauen, suggesting that local job creation should be governments’ top priority, rather than just the lowest price.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Wind Power Becoming too Cheap for Industry to Sustain Itself appeared first on the deep dive.

Author: Hermina Paull

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