Cathie Wood, or as we like to call her, Mama Cathie, has never met a falling knife she didn’t want to catch. Remember when she went all-in on Zoom and Teladoc? Yeah, those crashed harder than a Windows 98 reboot. But Cathie stuck to her guns. 

Now, UiPath is her latest bet, sitting pretty in her ARK Innovation ETF and a few others like the Next Generation Internet ETF. Even after the stock tanked 51% this year, Cathie’s still holding tight like it’s her favorite stuffed animal.

Classic Cathie—high risk, high reward. But after seeing Palantir and Coinbase stumble, you have to wonder if even she’s asking, “When’s this one gonna turn around?”

UiPath bumped its forecast for fiscal year 2025 to between $1.42 billion and $1.425 billion, which sounds like good news, right? Well, not so fast. Sure, it’s an increase, but barely. Sadly, it was right in line with what Wall Street was already expecting. 

In today’s market, investors don’t get excited about numbers that just hit the mark. They want fireworks, something that makes them sit up and say, “Okay, this is going places.” So far, UiPath hasn’t delivered that spark, and that’s why investors are still keeping their wallets closed.

One bright spot for UiPath is its subscription services, which saw a 21.7% increase in revenue, hitting $194.7 million. That’s a solid win, thanks to their SaaS offerings gaining steady traction. But despite this growth, the company’s still struggling. UiPath’s net loss jumped to $86.1 million, up from $60.4 million last year, thanks to stock-based compensation and restructuring expenses. Translation? They’re spending a lot more than they’re making, and that’s not what investors want to hear.

Even with these challenges, Wall Street hasn’t completely given up on UiPath. Morningstar’s Emma Williams gave the company a “narrow moat,” meaning she thinks they’ve got a competitive edge that could last at least a decade. She even slapped a $16.50 fair value on the stock, a decent bump from the current price of around $12. So, while UiPath might be in a slump right now, there’s still hope for a comeback.

Williams is betting on UiPath’s spot in the robotic process automation (RPA) game and their use of AI to set them apart from the competition, like Microsoft and its Power Automate platform. But standing out in the tech world isn’t enough—they’ve got to prove they can turn that innovation into profits.

UiPath’s been integrating AI for over five years, which is impressive, but investors don’t care about how cool the tech is unless it brings in revenue. If UiPath can translate their AI-driven automation into consistent cash flow, they’ll have a chance to outpace competitors like Microsoft. Otherwise, it’s just potential without the payoff.

Cathie Wood’s still betting big on UiPath, believing automation and AI are the future. But for the stock to truly rebound, UiPath will need to do more than just hit expectations—they’ll have to crush them. Cathie’s confident, but the market? It’s gonna take a lot more convincing before UiPath gets the love it’s been missing.

P.S. While traders and investors are glued to Cathie Wood’s latest move with UiPath, our last Stocks.News alert shot up 162% in under 24 hours. And hold onto your hats: we’re about to release another explosive alert—click here for the details.

Stock.News has positions in Microsoft.