It’s been a rough first half for some investors. If you owned shares of UiPath (NYSE: PATH), Chegg (NYSE: CHGG), and Roku (NASDAQ: ROKU) since the start of 2024, you’re in a world of hurt. The three stocks are down between 36% and 74% so far this year.
It doesn’t have to stay that way. I think all three stocks have a chance to deliver meaningful gains in the final six months of 2024. They may not make back the ground they lost in the first half of this year, but even a modest bounce from these humble starting lines can beat the market. Let’s take a closer look.
1. UiPath, Down 49%
It’s hard to believe that UiPath has been roughly cut in half this year. As a leading provider of robotics, automation, and artificial intelligence software solutions, this should be a fertile stock in 2024. Between wage inflation driving labor expenses higher and companies trying to gain an operational edge, UiPath’s tech platform for robotic process automation should be a dinner bell. So far this year, it’s been a fire alarm.
UiPath’s biggest hit came in late May following a poorly received quarterly report. Weak guidance and losing its second CEO this year weren’t bullish events. Now it’s time to see if the dramatic markdown here is ripe for a comeback story.
UiPath began the year with a pair of CEOs. Co-founder Daniel Dines, who was serving as co-CEO, stepped down in January. His fellow helmsman backed out at the end of May following the brutal financial update after just a couple of months as lone CEO. Dines agreed to return to the corner office.
Image source: Getty Images.
Growth has slowed at UiPath. The 16% revenue increase for its fiscal first quarter is about half the year-over-year jump it posted three months earlier. Its latest guidance suggests that the top line will continue to decelerate. The news isn’t necessarily any better on the bottom line. UiPath remains profitable on an adjusted basis, but it’s not expected to return to reported profitability until 2027.
Why should one be optimistic in the near term here? Well, despite the uninspiring guidance for the balance of 2024,…
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