Powerful AI Models Trigger Software Stock Sell-off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PATH?
Source: Fool
- Market Reaction: As AI models become increasingly powerful, software stocks experienced a sell-off during afternoon trading on April 13, 2026, indicating investor concerns over future profitability, which may lead to heightened stock price volatility in the short term.
- Investor Sentiment: The market's cautious stance towards the rapid development of AI technology reflects a belief that while these advancements could yield long-term benefits, the short-term stock price declines signal doubts about the overall health of the industry, potentially affecting capital inflows.
- Industry Impact: The overall valuation of the software sector may be impacted, particularly for companies heavily reliant on AI technology, as investors might reassess their future growth potential, leading to broader market adjustments.
- Future Outlook: Despite facing selling pressure currently, the maturation of AI technology could present new investment opportunities for the industry, prompting investors to monitor the dynamic balance between technological advancements and market reactions.
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Analyst Views on PATH
Wall Street analysts forecast PATH stock price to rise
18 Analyst Rating
2 Buy
15 Hold
1 Sell
Hold
Current: 10.020
Low
14.00
Averages
16.54
High
19.00
Current: 10.020
Low
14.00
Averages
16.54
High
19.00
About PATH
UiPath, Inc. is focused on agentic automation and orchestration, empowering enterprises to harness the full potential of AI agents to autonomously execute and optimize complex business processes. It is focused on building and managing automations, starting with computer vision technology and user interface automation in its initial robotic process automation offering. Its AI-powered UiPath Platform offers a robust set of capabilities that allows its customers to discover opportunities for automation, automate using a digital workforce that seamlessly collaborates with humans, and operate a mission-critical automation program at scale. It enables employees to quickly build automations for both existing and new processes and to automate a range of actions including logging into applications, moving folders, filling in forms, reading emails and others. Its platform allows users to design and combine UI automations, API integrations and AI-based document understanding in a single workflow.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Powerful AI Models Trigger Software Stock Sell-off
- Market Reaction: As AI models become increasingly powerful, software stocks experienced a sell-off during afternoon trading on April 13, 2026, indicating investor concerns over future profitability, which may lead to heightened stock price volatility in the short term.
- Investor Sentiment: The market's cautious stance towards the rapid development of AI technology reflects a belief that while these advancements could yield long-term benefits, the short-term stock price declines signal doubts about the overall health of the industry, potentially affecting capital inflows.
- Industry Impact: The overall valuation of the software sector may be impacted, particularly for companies heavily reliant on AI technology, as investors might reassess their future growth potential, leading to broader market adjustments.
- Future Outlook: Despite facing selling pressure currently, the maturation of AI technology could present new investment opportunities for the industry, prompting investors to monitor the dynamic balance between technological advancements and market reactions.
See More
High-Quality SaaS Stocks Rebound Amid Market Optimism
- Market Rebound Signal: Amid cautious optimism surrounding U.S.-Iran ceasefire talks, investors are moving to buy the dip in high-quality SaaS stocks, leading to significant morning gains in several stocks, indicating a recovery in market confidence towards these equities.
- Analyst Support: Bernstein reiterated an 'Outperform' rating for ServiceNow, framing it as a foundational AI agent platform with an impenetrable moat in business process automation, which further bolsters investor confidence in sector leaders.
- Stock Performance: Content delivery company Fastly (NASDAQ:FSLY) jumped 5.1%, cloud monitoring firm Dynatrace (NYSE:DT) rose 3.6%, and automation software company UiPath (NYSE:PATH) increased by 4%, reflecting strong buying interest despite broader market pressures from rising oil prices.
- Market Volatility: Fastly's shares have seen 49 moves greater than 5% over the past year; while up 140% year-to-date, they remain 26.9% below their 52-week high, highlighting cautious market sentiment and the competitive pressures traditional SaaS models face from emerging AI solutions.
See More
UiPath and SentinelOne Stocks Hit Record Lows Amid Market Pressure
- Stock Decline Trend: UiPath shares fell 5.6% to $9.38 on Friday, marking the lowest point since its IPO in April 2021, reflecting ongoing selling pressure and investor concerns about future growth prospects.
- SentinelOne's Poor Performance: SentinelOne's stock also dropped 6.5% to $11.94 on Friday, reaching a record low, despite recent partnerships with Google Cloud, indicating market caution regarding its growth outlook.
- Shifts in Market Sentiment: While CRM shares are down 38%, retail investor sentiment has turned 'extremely bullish', indicating confidence in its rebound potential, whereas PATH and S sentiment remains 'neutral' and 'bearish', respectively.
- Analyst Target Reductions: Following UiPath's earnings report, several brokerages lowered their price targets, with Piper Sandler reducing its target from $17 to $15, which still implies a 60% upside, but concerns about overall growth deceleration persist.
See More
UiPath Shares Drop Amid Anthropic's New AI Tool Announcement
- Stock Decline: UiPath Inc. (PATH) shares fell over 5.7% on Friday, hitting a 52-week low of $9.28 before closing slightly higher at $9.38, reflecting investor concerns over Anthropic's new AI tools that spooked the market.
- Market Sentiment Shift: Despite the drop in UiPath's stock price, retail trader sentiment on Stocktwits shifted from 'neutral' to 'bullish', with message volumes increasing from 'low' to 'normal', indicating some investors' optimism about the company's future prospects.
- Investor Perspectives: Some users described the selloff as 'fearful and irrational', asserting that UiPath would integrate with Anthropic's AI tools, and while market realization may take time, the long-term payoff is expected to be significant, showcasing confidence in the company's trajectory.
- Impact of Anthropic Tools: The launch of Anthropic's Claude Managed Agents enables developers to build AI agents ten times faster, offering a secure cloud sandbox for executing code and managing tasks, which could have profound implications for UiPath's market position, despite the current pressure on its stock price.
See More
Investment Opportunities Amid Market Pullback
- UiPath Price Pullback: UiPath's shares have fallen over 40% since their December peak, yet its core automated workflow concept remains appealing to users, suggesting a potential rebound; currently priced at less than 14 times projected earnings, it presents a buying opportunity.
- Remitly User Growth: Remitly Global saw a 19% year-over-year increase in active users to 9.3 million in Q4, driving a 35% rise in total transfer amounts and a 26% revenue increase to $442 million, successfully turning a loss into a profit, showcasing its strong performance in the cross-border payments market.
- Meta's AI Utilization: Meta Platforms' stock has dropped 28% since August, but its ability to enhance advertising through AI has led to a 24% revenue growth in Q4, demonstrating its ongoing competitiveness in social networking, making it a long-term growth prospect for investors.
- Overall Market Trends: Despite the broader market pullback, investors should view this as a buying opportunity, particularly for companies with substantial AI applications like UiPath, Remitly, and Meta, which are expected to benefit from long-term growth.
See More
Market Volatility in AI Stocks Presents Investment Opportunities
- UiPath Stock Decline: UiPath's shares have fallen over 40% since December, primarily due to a broader pullback in the AI sector; however, its automated workflow solutions remain highly marketable, potentially attracting long-term investors.
- Remitly User Growth: Remitly Global saw a 19% year-over-year increase in active users to 9.3 million in Q4, driving a 35% rise in total money transferred and enabling the company to shift from a $5.7 million loss to a $41.2 million profit, showcasing its strong performance in cross-border payments.
- Meta's AI Strategy: Meta Platforms' stock has dropped 28% since August, yet its strategy of leveraging AI to enhance its advertising business is proving effective, with Q4 revenue growth accelerating to 24%, reflecting its sustained competitiveness in the social networking space.
- Investor Buying Opportunity: Despite the volatility in AI stocks, veteran investors view this as a buying opportunity, particularly for companies like UiPath and Remitly that have practical applications in AI, which may yield higher returns in the future.
See More
Powerful AI Models Trigger Software Stock Sell-off
- Market Reaction: As AI models become increasingly powerful, software stocks experienced a sell-off during afternoon trading on April 13, 2026, indicating investor concerns over future profitability, which may lead to heightened stock price volatility in the short term.
- Investor Sentiment: The market's cautious stance towards the rapid development of AI technology reflects a belief that while these advancements could yield long-term benefits, the short-term stock price declines signal doubts about the overall health of the industry, potentially affecting capital inflows.
- Industry Impact: The overall valuation of the software sector may be impacted, particularly for companies heavily reliant on AI technology, as investors might reassess their future growth potential, leading to broader market adjustments.
- Future Outlook: Despite facing selling pressure currently, the maturation of AI technology could present new investment opportunities for the industry, prompting investors to monitor the dynamic balance between technological advancements and market reactions.
See More
High-Quality SaaS Stocks Rebound Amid Market Optimism
- Market Rebound Signal: Amid cautious optimism surrounding U.S.-Iran ceasefire talks, investors are moving to buy the dip in high-quality SaaS stocks, leading to significant morning gains in several stocks, indicating a recovery in market confidence towards these equities.
- Analyst Support: Bernstein reiterated an 'Outperform' rating for ServiceNow, framing it as a foundational AI agent platform with an impenetrable moat in business process automation, which further bolsters investor confidence in sector leaders.
- Stock Performance: Content delivery company Fastly (NASDAQ:FSLY) jumped 5.1%, cloud monitoring firm Dynatrace (NYSE:DT) rose 3.6%, and automation software company UiPath (NYSE:PATH) increased by 4%, reflecting strong buying interest despite broader market pressures from rising oil prices.
- Market Volatility: Fastly's shares have seen 49 moves greater than 5% over the past year; while up 140% year-to-date, they remain 26.9% below their 52-week high, highlighting cautious market sentiment and the competitive pressures traditional SaaS models face from emerging AI solutions.
See More
UiPath and SentinelOne Stocks Hit Record Lows Amid Market Pressure
- Stock Decline Trend: UiPath shares fell 5.6% to $9.38 on Friday, marking the lowest point since its IPO in April 2021, reflecting ongoing selling pressure and investor concerns about future growth prospects.
- SentinelOne's Poor Performance: SentinelOne's stock also dropped 6.5% to $11.94 on Friday, reaching a record low, despite recent partnerships with Google Cloud, indicating market caution regarding its growth outlook.
- Shifts in Market Sentiment: While CRM shares are down 38%, retail investor sentiment has turned 'extremely bullish', indicating confidence in its rebound potential, whereas PATH and S sentiment remains 'neutral' and 'bearish', respectively.
- Analyst Target Reductions: Following UiPath's earnings report, several brokerages lowered their price targets, with Piper Sandler reducing its target from $17 to $15, which still implies a 60% upside, but concerns about overall growth deceleration persist.
See More
UiPath Shares Drop Amid Anthropic's New AI Tool Announcement
- Stock Decline: UiPath Inc. (PATH) shares fell over 5.7% on Friday, hitting a 52-week low of $9.28 before closing slightly higher at $9.38, reflecting investor concerns over Anthropic's new AI tools that spooked the market.
- Market Sentiment Shift: Despite the drop in UiPath's stock price, retail trader sentiment on Stocktwits shifted from 'neutral' to 'bullish', with message volumes increasing from 'low' to 'normal', indicating some investors' optimism about the company's future prospects.
- Investor Perspectives: Some users described the selloff as 'fearful and irrational', asserting that UiPath would integrate with Anthropic's AI tools, and while market realization may take time, the long-term payoff is expected to be significant, showcasing confidence in the company's trajectory.
- Impact of Anthropic Tools: The launch of Anthropic's Claude Managed Agents enables developers to build AI agents ten times faster, offering a secure cloud sandbox for executing code and managing tasks, which could have profound implications for UiPath's market position, despite the current pressure on its stock price.
See More
Investment Opportunities Amid Market Pullback
- UiPath Price Pullback: UiPath's shares have fallen over 40% since their December peak, yet its core automated workflow concept remains appealing to users, suggesting a potential rebound; currently priced at less than 14 times projected earnings, it presents a buying opportunity.
- Remitly User Growth: Remitly Global saw a 19% year-over-year increase in active users to 9.3 million in Q4, driving a 35% rise in total transfer amounts and a 26% revenue increase to $442 million, successfully turning a loss into a profit, showcasing its strong performance in the cross-border payments market.
- Meta's AI Utilization: Meta Platforms' stock has dropped 28% since August, but its ability to enhance advertising through AI has led to a 24% revenue growth in Q4, demonstrating its ongoing competitiveness in social networking, making it a long-term growth prospect for investors.
- Overall Market Trends: Despite the broader market pullback, investors should view this as a buying opportunity, particularly for companies with substantial AI applications like UiPath, Remitly, and Meta, which are expected to benefit from long-term growth.
See More
Market Volatility in AI Stocks Presents Investment Opportunities
- UiPath Stock Decline: UiPath's shares have fallen over 40% since December, primarily due to a broader pullback in the AI sector; however, its automated workflow solutions remain highly marketable, potentially attracting long-term investors.
- Remitly User Growth: Remitly Global saw a 19% year-over-year increase in active users to 9.3 million in Q4, driving a 35% rise in total money transferred and enabling the company to shift from a $5.7 million loss to a $41.2 million profit, showcasing its strong performance in cross-border payments.
- Meta's AI Strategy: Meta Platforms' stock has dropped 28% since August, yet its strategy of leveraging AI to enhance its advertising business is proving effective, with Q4 revenue growth accelerating to 24%, reflecting its sustained competitiveness in the social networking space.
- Investor Buying Opportunity: Despite the volatility in AI stocks, veteran investors view this as a buying opportunity, particularly for companies like UiPath and Remitly that have practical applications in AI, which may yield higher returns in the future.
See More
