The shares of UiPath (NYSE:PATH), the largest IT startup in Romania, fell 6.2% on December 15, an hour and a half from the start of the trading session in New York, according to MarketWatch, quoted by Ziarul Financiar.

The company suffered a 42% decline from its initial public offering (IPO) in April. At present, its capitalization reaches USD 20 bln, and the price of a share reaches 40 dollars, a new historical minimum.

“Given the premium valuation, however, the stock could continue to fall for a while,” writes Nicholas Rossolillo for The Motley Fool - a decentralized publication for tech investors.

Last week, UiPath reported financial results for the most recent nine months to the end of October, according to the US reporting calendar.

Thus, between February and October 2021, the company had a loss of USD 463 mln and revenues of USD 603 mln.

But the company’s valuation is rather looked at in terms of the dynamics of the market that it dominates.

If management develops this trend and continues to lead the market for software robots (RPA), estimated to grow from USD 17 bln in 2020 to USD 30 bln in 2024, the company would have a chance to change the path it has taken.

(Photo: Dreamstime)

andrei@romania-insider.com