5 AI Bubble Stocks to Short Now According to Reddit

In this piece we will look at the 5 AI Bubble Stocks to Short Now According to Reddit. Please visit 10 AI Bubble Stocks to Short Now According to Reddit if you’d like to see an extended list and how we came up with the list of AI Bubble Stocks to Short Now According to Reddit.

​5. UiPath, Inc. (NYSE:PATH)

Number of Hedge Fund Holders: 40

UiPath, Inc. (NYSE:PATH) has fallen more than 28.5% on a year-to-date basis, and the stock’s short float has exceeded 30%, making it one of the AI Bubble Stocks to Short Now According to Reddit. Wall Street has turned cautious, with 74% of the 23 analysts covering the stock maintaining a Hold rating on the shares.

​Recently, on June 1, BMO Capital lowered the price target on UiPath, Inc. (NYSE:PATH) from $14 to $13, while maintaining a Hold rating on the shares. Earlier on May 29, William Blair analyst Patrick McIlwee also maintained a Neutral stance on the stock without disclosing any price targets.

​BMO acknowledged that the company posted a solid start to fiscal 2027, with revenue coming in ahead of expectations. However, the firm noted that net new ARR came in modestly below consensus on a constant currency basis, which tempered enthusiasm. Looking ahead, BMO believes larger AI-driven deals and strength among enterprise customers will be the key drivers of net new ARR growth.

​Patrick McIlwee of William Blair also acknowledged the first quarter results to be solid, but finds limited upside at current valuation levels. He noted that the company topped revenue expectations, driven by AI-driven agentic and orchestration products’ notable strength. However, he highlighted that much of the revenue beat was driven by license revenue, which likely explains the post-earnings share price pullback despite the headline beat. He noted that although management has guided towards solid growth, the stock trades at a high multiple of forward free cash flow.

​UiPath, Inc. (NYSE:PATH) is a firm that works in the development and provision of a software platform to automate business processes.