UiPath co-founder and CEO Daniel Dines
UiPath’s New York Stock Exchange debut scheduled for Wednesday will mark one of the biggest software IPOs in U.S. history and will be the most hyped first trade for cloud investors since Snowflake went public in September.
But the company, whose software helps businesses automate office tasks, has to contend with escalating investor concern over frothy valuations and a market rotation away from high-growth tech.
In recent years, cloud has been a can’t-miss bet. From Zoom’s skyrocketing popularity after its 2019 IPO and Shopify’s growth in e-commerce, to surging demand for cloud security tools sold by Zscaler and CrowdStrike, investors now have an extensive roster of large-cap names for their portfolio.
In 2020, the WisdomTree Cloud Computing Fund, consisting of 58 publicly traded cloud software vendors, more than doubled, while the Nasdaq rose 44% and the Dow Jones Industrial Average gained