UiPath pursues one of the biggest software IPOs ever as investors rotate out of cloud stocks
Summary
UiPaths New York Stock Exchange debut scheduled for Wednesday will mark one of the biggest software IPOs in U.S. history and will be the most hyped first trade for cloud investors since Snowflake went public in September. But the company, whose software helps businesses automate office tasks, has to contend with escalating investor concern over frothy valuations and a market rotation away from high-growth tech. From Zooms skyrocketing popularity after its 2019 IPO and Shopifys growth in e-commerce, to surging demand for cloud security tools sold by Zscaler and CrowdStrike, investors now have an extensive roster of large-cap names for their portfolio. The companys software robots are designed to automate repetitive tasks in industries like health care, manufacturing and energy and across departments including finance, human resources and legal. Subscription software companies call it a "land and expand" strategy, allowing businesses to start with a test, then buy a limited amount, with the idea that some will eventually become power users.
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