Hedgeye adds UiPath to its list of top short positions

what happened

According to Seeking Alpha, Hedgeye analyst Andrew Freedman has placed UiPath among its top short positions and sees the shares falling 38% over the next 12 to 18 months. In a note published on Monday, he said Hedgeye had argued since April that model companies would compete for the robotic work UiPath performs and for the orchestration layer it needs to grow into.

Freedman said total customers fell by about 400 over two quarters. He also pointed to UiPath's answer to coding agents, which runs on customers' own tools such as Claude Code, Cursor or Codex without a UiPath usage meter, while other platforms now sell or preview their own context layers. The company's new long-term model targets a gross margin of 80% or more, below the 85% it earned in FY26. Freedman believes the stock still trades at a premium to the business's worth and could drop to $8. UiPath shares have fallen 20% so far this year.

why it matters

Ratings like this can shape sentiment around a stock, but this is one analyst's view rather than a company result. Investors typically watch customer trends and gross margin to judge how well-founded such a call is, and compare it with rivals in enterprise software.

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