UiPath Stock Plummets 34.75% Amid Sudden Departure of CEO

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UiPath (PATH) shares plummeted 34.75% following an unexpected CEO shakeup and weak sales guidance. CEO Rob Enslin is stepping down on June 1 and will be replaced by co-founder Daniel Dines, who had resigned as co-CEO on January 31. The company cited a softening macroeconomic environment and the leadership transition for its weaker-than-expected sales outlook.

UiPath (PATH) expects current-quarter revenue of $300 million to $305 million, with the top of that forecast coming in significantly below the $333 million expected by analysts. For the full year, the company downwardly revised its guidance, saying it now expects net sales in the period of $1.405 billion to $1.410 billion, below its earlier forecast of between $1.555 billion and $1.560 billion.

Since reaching their current 2024 high in early February, UiPath shares (PATH) have continued to track lower, with the price recently falling below the 200-day moving average (MA) to sit on a multi-month trendline leading into the company's quarterly results. The 50-day MA looks set to soon cross down below the 200-day MA to form an ominous death cross, a pattern that often confirms the start of a new downtrend.

Amid Thursday's earnings-driven sell-off, investors might monitor if the stock can close above the $14 level, an area on the chart that finds support from a horizontal line extending back to the May 2022 swing low. An inability of buyers to defend this important level could see the shares retest their record low set at $10.40 in November 2022.