Here is What You Need to Know Before Investing in Upland Software, Inc. (UPLD)

Upland Software, Inc. (NASDAQ:UPLD) is among the 10 Most Undervalued Stocks to Buy for Under $5. The company provides AI-powered knowledge and content management software.

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The company has had a challenging year, with its shares dropping by over 60%. A major factor behind the plunge has been Upland Software, Inc. (NASDAQ:UPLD)’s contracting revenues compared to other players in the industry.

During the most recent quarter, Upland Software, Inc. (NASDAQ:UPLD) reported total revenues of $63.7 million, down 10% from the prior year’s period, 6% sequentially, and 19% lower than in the first quarter three years ago. The company’s GAAP net loss was $25.8 million. While the results came in better than expected, they largely failed to impress investors.

On the plus side, Upland Software, Inc. (NASDAQ:UPLD) is divesting nonstrategic lines to focus on its core business. While the move has lowered revenue guidance for 2025, it is not expected to impact adjusted EBITDA. Moreover, the stock has a one-year average price target of $4.25 per share, representing a 137% upside potential from its current trading level.

On May 13, Needham reiterated its Hold rating for Upland Software, Inc. (NASDAQ:UPLD), while recognizing the company’s efforts to refine its operations, especially with the recent sale of the mobile messaging product line. The analyst viewed UPLD’s strategy to streamline its portfolio positively, given the strength of certain products and the company’s historical difficulty with cross-selling loosely related products.

While we acknowledge the potential of UPLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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