Stock Market Today, July 17: UiPath Gains on Retail AI Partnership

The Motley Fool · 17h ago

UiPath (NYSE:PATH), an enterprise automation and robotic software provider, closed at $12.15, up 1.00%. The gains follow a recent retail artificial intelligence (AI) partnership, while broader technology weakness stayed in focus.
Trading volume reached 90.6 million shares, coming in about 86% above its three-month average of 48.7 million shares. UiPath IPO'd in 2021 and has fallen 81% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 1.01% to 7,458, and the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 1.40% to 25,520. Among robotic process automation rivals, Appian (NASDAQ:APPN) closed at $26.11, down 0.38%, while Pegasystems (NASDAQ:PEGA), which will report Q2 earnings next week, closed at $32.16, down 2.31%.

What this means for investors

UiPath erased some of its losses today, but the stock is still down over 26% year-to-date. It automates common back-office business tasks with AI and robotic technology, but it has struggled alongside other software stocks as investors fear that AI might replace its services altogether.

While the firm’s Q1 revenues increased by 17% year-on-year to $418 million, analysts wanted to see stronger subscription figures to demonstrate sustainable prospective growth. As such, its recent deal with UK online retailer The Very Group, under which UiPath will provide agentic AI pricing solutions, could boost its long-term potential.

The deal is positive, but it is only one step in the right direction. UiPath needs to show it can use AI to deliver the services companies need rather than being replaced by this rapidly evolving technology.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool recommends Appian. The Motley Fool has a disclosure policy.