We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UiPath vs. AppLovin: Which AI-Driven Tech Stock is Purchase-Worthy?
Read MoreHide Full Article
Key Takeaways
PATH leads the RPA space with strong enterprise ties, recurring revenues and 12% ARR growth.
APP's Axon 2 quadrupled ad spend and revived growth despite stagnation in mobile gaming.
PATH trades at 4.09X forward sales vs. APPs 19.88X, making it the more attractive valuation play.
UiPath (PATH - Free Report) and AppLovin Corporation (APP - Free Report) are two prominent players leveraging artificial intelligence to transform digital operations. UiPath leads the robotic process automation sector (RPA), applying AI to streamline enterprise workflows.AppLovin, on the other hand, operates in the mobile ad tech space, using AI to optimize app monetization and user acquisition.
As AI becomes an integral part of modern business software, the key question is: Which of these AI-driven tech stocks presents a more compelling investment opportunity today? Let’s examine their fundamentals, growth drivers and valuations.
The Case for UiPath
UiPath remains a strong force in the booming RPA market, which is poised for substantial expansion over the coming years. Its end-to-end automation platform positions the company to seize opportunities as demand for AI-driven solutions surges.
A critical driver of PATH’s success is its strategic alliances with top technology giants. Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) and Salesforce (CRM - Free Report) continue to play pivotal roles in expanding UiPath’s reach and capabilities. These partnerships not only bolster PATH’s credibility but also integrate its offerings into broader enterprise ecosystems powered by Microsoft Azure, Amazon’s AWS and Salesforce Cloud solutions.
The company boasts high customer retention, with net retention rates ranging between 110% and 115%, underscoring its ability to expand usage within existing accounts. In the first quarter of fiscal 2026, UiPath reported a 6% increase in revenues year over year, reaching $357 million. Additionally, its annual recurring revenue rose 12% to $1.69 billion, reflecting the strength of its subscription-based business model and customer loyalty.
With a strong global presence, a robust partner ecosystem, particularly with Microsoft, Amazon, and Salesforce, and a continued focus on intelligent automation, UiPath is well-positioned to maintain its leadership in the evolving RPA and enterprise automation market.
The Case for AppLovin
AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2, which launched in the second quarter of 2023. Since its debut, Axon 2 has radically enhanced AppLovin’s ad performance, helping to quadruple advertising spend on its platform.
This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation.
Axon 2’s importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2 served as a critical catalyst for recovery. While Western mobile gaming experienced stagnation in 2022, Axon 2 reignited ad-driven momentum. Though in-app purchases are seeing modest, mid-single-digit growth, AppLovin’s MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2’s strategic advantage.
Google, Microsoft and Salesforce are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure’s AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences.
While these giants focus on enterprise productivity and CRM, Applovintakes a different route, using AI to drive direct monetization in mobile advertising.
How Do Zacks Estimates Compare for PATH & APP?
The Zacks Consensus Estimate for UiPath’s 2025 sales and EPS indicates year-over-year growth of 8.5% and 5.7%, respectively. EPS estimates have been trending flat over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AppLovin’s 2025 sales and EPS indicates year-over-year growth of 16.3% and 85.4%, respectively. Both upward and downward EPS revisions have offset each other, keeping estimates flat over the past 60 days.
Image Source: Zacks Investment Research
UiPath’s Valuation More Attractive Than AppLovin
UiPath is trading at a forward sales multiple of 4.09X, below its 12-month median of 4.44X. AppLovin’s forward sales multiple stands at 19.88X, above its median of 18.7X.
Winner: UiPath
UiPath emerges as the more compelling AI-driven investment. While AppLovin dazzles with Axon 2 and ad spend growth, UiPath’s leadership in the fast-expanding RPA market, strong enterprise partnerships with Microsoft, Amazon, and Salesforce, and high customer retention offer long-term stability. Its subscription-based model ensures recurring revenue, and its valuation — trading at a much lower forward sales multiple than AppLovin — makes it a better value play. UiPath’s enterprise focus and strategic alliances give it an edge in AI scalability and business relevance. For investors seeking sustainable, enterprise-grade AI exposure, UiPath stands out as the smarter buy.
Image: Bigstock
UiPath vs. AppLovin: Which AI-Driven Tech Stock is Purchase-Worthy?
Key Takeaways
UiPath (PATH - Free Report) and AppLovin Corporation (APP - Free Report) are two prominent players leveraging artificial intelligence to transform digital operations. UiPath leads the robotic process automation sector (RPA), applying AI to streamline enterprise workflows.AppLovin, on the other hand, operates in the mobile ad tech space, using AI to optimize app monetization and user acquisition.
As AI becomes an integral part of modern business software, the key question is: Which of these AI-driven tech stocks presents a more compelling investment opportunity today? Let’s examine their fundamentals, growth drivers and valuations.
The Case for UiPath
UiPath remains a strong force in the booming RPA market, which is poised for substantial expansion over the coming years. Its end-to-end automation platform positions the company to seize opportunities as demand for AI-driven solutions surges.
A critical driver of PATH’s success is its strategic alliances with top technology giants. Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) and Salesforce (CRM - Free Report) continue to play pivotal roles in expanding UiPath’s reach and capabilities. These partnerships not only bolster PATH’s credibility but also integrate its offerings into broader enterprise ecosystems powered by Microsoft Azure, Amazon’s AWS and Salesforce Cloud solutions.
The company boasts high customer retention, with net retention rates ranging between 110% and 115%, underscoring its ability to expand usage within existing accounts. In the first quarter of fiscal 2026, UiPath reported a 6% increase in revenues year over year, reaching $357 million. Additionally, its annual recurring revenue rose 12% to $1.69 billion, reflecting the strength of its subscription-based business model and customer loyalty.
With a strong global presence, a robust partner ecosystem, particularly with Microsoft, Amazon, and Salesforce, and a continued focus on intelligent automation, UiPath is well-positioned to maintain its leadership in the evolving RPA and enterprise automation market.
The Case for AppLovin
AppLovin has solidified its leadership in mobile advertising, powered by its next-gen AI engine, Axon 2, which launched in the second quarter of 2023. Since its debut, Axon 2 has radically enhanced AppLovin’s ad performance, helping to quadruple advertising spend on its platform.
This explosive growth has led to an estimated $10 billion annual run rate in ad spend from gaming clients, pushing APP into the upper echelon of global ad tech firms by valuation.
Axon 2’s importance goes far beyond mere optimization. In a post-Identifier for Advertisers environment that disrupted mobile user acquisition strategies, Axon 2 served as a critical catalyst for recovery. While Western mobile gaming experienced stagnation in 2022, Axon 2 reignited ad-driven momentum. Though in-app purchases are seeing modest, mid-single-digit growth, AppLovin’s MAX publisher base is expanding at a significantly faster rate, underscoring Axon 2’s strategic advantage.
Google, Microsoft and Salesforce are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure’s AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences.
While these giants focus on enterprise productivity and CRM, Applovintakes a different route, using AI to drive direct monetization in mobile advertising.
How Do Zacks Estimates Compare for PATH & APP?
The Zacks Consensus Estimate for UiPath’s 2025 sales and EPS indicates year-over-year growth of 8.5% and 5.7%, respectively. EPS estimates have been trending flat over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AppLovin’s 2025 sales and EPS indicates year-over-year growth of 16.3% and 85.4%, respectively. Both upward and downward EPS revisions have offset each other, keeping estimates flat over the past 60 days.
Image Source: Zacks Investment Research
UiPath’s Valuation More Attractive Than AppLovin
UiPath is trading at a forward sales multiple of 4.09X, below its 12-month median of 4.44X. AppLovin’s forward sales multiple stands at 19.88X, above its median of 18.7X.
Winner: UiPath
UiPath emerges as the more compelling AI-driven investment. While AppLovin dazzles with Axon 2 and ad spend growth, UiPath’s leadership in the fast-expanding RPA market, strong enterprise partnerships with Microsoft, Amazon, and Salesforce, and high customer retention offer long-term stability. Its subscription-based model ensures recurring revenue, and its valuation — trading at a much lower forward sales multiple than AppLovin — makes it a better value play. UiPath’s enterprise focus and strategic alliances give it an edge in AI scalability and business relevance. For investors seeking sustainable, enterprise-grade AI exposure, UiPath stands out as the smarter buy.
While PATH sports a Zacks Rank #1 (Strong Buy), APP carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.