Core Insights - IBM's stock dropped 7% in after-hours trading despite strong earnings, primarily due to concerns over slowing growth in its software segment [2][4][10] Financial Performance - IBM reported adjusted earnings per share of $2.65, exceeding the consensus estimate of $2.45, with revenue of $16.33 billion, surpassing the anticipated $16.09 billion [2][4] - Revenue growth was 9% year-over-year, marking the best quarterly performance in recent times, while adjusted earnings per share increased by 15% compared to the previous year [4][9] Segment Analysis - Strong demand for AI-optimized mainframe systems and a 24% growth in automation software contributed to the positive performance [4] - The software division's growth of 10% to $7.21 billion met expectations but raised concerns about the sustainability of IBM's AI-driven transformation [4][10] - Red Hat's constant-currency revenue growth slowed to 12% from 14% in the last quarter, raising further concerns among analysts [4][10] Valuation and Market Outlook - IBM's stock is currently trading around $270, with analyst price targets averaging $286, indicating limited upside potential [5] - The stock has gained approximately 30% year-to-date, reflecting investor confidence in IBM's AI positioning, but it trades at a trailing P/E ratio of about 45 times, suggesting a high multiple relative to its growth outlook [5][10] Strategic Positioning - IBM's AI business portfolio has surpassed $9.5 billion, and the company is generating strong free cash flow, positioning it well for the ongoing technology transition [9] - Management's guidance for full-year revenue growth of over 5% and free cash flow of $14 billion offers some reassurance, although these projections may be ambitious given the software segment's slowdown [5][10]

UiPath Inc. (NYSE:PATH) saw its stock rise 7.70% in pre-market trading on Thursday, reaching $16.79.Check out the current price of PATH stock here. The automation software company added $1.12 per share after the bell, building on a 5.13% gain during the regular session, which ended at $15.58, according to Benzinga Pro data.According to Fortune, UiPath is shifting from traditional Robotic Process Automation (RPA) to "agentic" automation, embedding AI agents for complex tasks and strengthening its platform th ...

Key Points UiPath received positive commentary from a Wall Street analyst, even though that analyst remained neutral on the stock. The move was more likely due to meme stock traders on the Wall Street Bets message board discussing a UiPath comeback over the weekend. 10 stocks we like better than UiPath › Shares of UiPath (NYSE: PATH) rallied on Monday, with shares up 10.5% as of 3 p.m. ET. UiPAth received a positive sell-side analyst note today, and was discussed extensively on Reddit message boar ...