AppLovin vs. UiPath: Which AI-Driven Tech Stock is a Better Buy?

Core Insights - AppLovin Corporation (APP) and UiPath Inc. (PATH) are leveraging artificial intelligence to enhance their respective sectors, with AppLovin focusing on mobile ad tech and UiPath on robotic process automation [1][2] Group 1: AppLovin - AppLovin is integrating AI into its ad tech platform, which provides a competitive advantage as mobile advertisers seek performance-based solutions [3] - The company is transitioning to a pure-play advertising platform, highlighted by the $900 million sale of its gaming unit to Tripledot Studios, allowing it to focus on ad technology [4] - In Q4 2024, AppLovin's revenues increased by 44% year-over-year, with adjusted EBITDA rising by 78% year-over-year and net income soaring by 248% [5] - The Zacks Consensus Estimate for AppLovin's 2025 sales indicates a 20% year-over-year growth, with EPS expected to grow by 51% [9] Group 2: UiPath - UiPath is a leader in the RPA market, which is projected to grow significantly, positioning the company to benefit from the demand for AI-driven automation solutions [6] - In Q4 of fiscal 2025, UiPath's revenue increased by 5% year-over-year to $424 million, with annual recurring revenues reaching $1.67 billion, reflecting a 14% growth [7] - UiPath's valuation is more attractive than AppLovin's, trading at a forward sales multiple of 3.51X compared to AppLovin's 13.4X [12] Group 3: Comparative Analysis - AppLovin is viewed as a stronger investment opportunity due to its accelerating revenue growth and rising profitability, while UiPath remains a solid contender in enterprise automation [13]