Shares of UiPath (PATH 19.48%) are soaring on Wednesday, up 19.3% as of 3:45 p.m. ET. The jump comes as the S&P 500 and the Nasdaq Composite lost 0.4% and 0.2%, respectively.
The software and automation company's stock is getting a lift from buzz surrounding Agentic artificial intelligence (AI) just a week after announcing new partnerships with some heavy hitters in AI like OpenAI.
Amazon releases an Agentic platform
Amazon launched its Amazon Quick Suite through its Amazon Web Services (AWS), which it says is the "agentic AI application reshaping how work gets done." The platform brings together a host of automation and agentic AI tools, making them easier to use. The news helped boost positive sentiment around agentic AI, a core focus of UiPath, lifting the company's shares.
This comes just a week after UiPath announced that it was teaming up with several major AI players, including OpenAI, Nvidia, and Snowflake.
Image source: Getty Images.
UiPath's stock is pricey
While the news has been positive over the past few weeks, UiPath's valuation is just too high to recommend buying UiPath shares. Its price-to-earnings ratio (P/E) is north of 400, making it incredibly expensive and priced for perfection. I would avoid the stock.
