You’d be forgiven for thinking she bailed completely. The silence from ARK on UiPath in recent earnings commentary, combined with the stock’s underperformance, has led to rumors. But the data shows a more nuanced retreat than a full exit.
How Cathie Wood’s Funds Invest: The ARK Philosophy in Practice
The core of Wood’s strategy isn’t passive indexing. It’s disruption. She doesn’t buy companies; she buys narratives—long-term transformative waves in technology. Think AI, robotics, DNA sequencing, blockchain, fintech. UiPath, at its peak relevance to ARK, fit neatly into automation and enterprise AI. That was the story in 2021. But stories evolve. So do portfolios.
Funds like ARKK, ARKW, and ARKQ are actively rebalanced. Every day. Not monthly, not quarterly—daily. The team at ARK Invest assesses valuation, innovation velocity, and competitive moat. If a stock becomes overpriced relative to its trajectory, or if momentum stalls, they’ll trim. Hard. They’ve done it with Tesla, Coinbase, Zoom. And yes, UiPath.
And that’s where people don’t think about this enough: just because a stock is still in the portfolio doesn’t mean it’s a conviction play. A 0.1% weighting isn’t a buy signal. It’s often just residual exposure.
What Active Management Really Means in ARK’s Case
Active management at ARK isn’t about beating an index by 2%. It’s about betting against consensus. They buy early, ride the hype, then exit before the skeptics dominate. Their turnover ratios are astronomical—over 70% annually, sometimes more. In volatile markets, it spikes to 100%+. That kind of churn means positions can vanish almost overnight.
This isn’t Warren Buffett holding Coca-Cola for decades. This is venture capital logic applied to public markets. You get in fast, scale fast, and get out faster when the growth story falters.
The Role of Thematic Investing in Tech Exposure
Thematic investing is why UiPath ever made sense for ARK. The “automation of everything” was, and to some extent still is, a core thesis. But the issue remains: UiPath isn’t growing like a 2021 disruptor anymore. Its revenue growth slowed from 67% YoY in Q1 2022 to just 14% in Q4 2023. That’s not catastrophic for a mature software firm—but it’s fatal for a high-growth ARK holding.
So ARK rotated. Into smaller, faster players in AI infrastructure. Into robotics process automation startups trading on private markets. Because disruption doesn’t wait for earnings stabilization.
UiPath’s Journey in ARK’s Portfolios: From Star to Sideline
Let’s look at the numbers. In January 2021, before UiPath even went public, ARK was already accumulating pre-IPO shares. By May 2021, post-IPO, UiPath (PATH) was a 3.2% holding in ARKK—top 10. The stock traded above $70. ARK was all in.
Fast forward to 2024. The latest 13F filing shows ARKK holding just 1.2 million shares—down from 9.8 million at peak. That’s an 88% reduction. The stake now represents roughly 0.18% of ARKK’s assets. ARKW holds even less. You’d need a microscope to see the impact.
The thing is, ARK didn’t just sell UiPath. They rotated into competitors and adjacent plays. SoundHound AI, Palantir, C3.ai—all beneficiaries of that capital shift. Because when one automation story cools, you don’t wait. You pivot.
And this isn’t about UiPath failing. The company posted $1.8 billion in ARR by late 2023, up from $1.1 billion in 2021. But up 64% over three years? That’s SaaS, not disruption. And ARK doesn’t do SaaS.
Timeline of ARK’s UiPath Position Changes
Q2 2021: Initial public offering. ARK buys heavily. Stake: 4.1 million shares. Weight in ARKK: ~3.0%.
Q4 2022: Growth concerns mount. Stock trades below $20. ARK trims by 40%.
Q2 2023: AI hype shifts to generative models. UiPath seen as legacy RPA. ARK sells another 3.2 million shares.
Q1 2024: Remaining stake: 1.2 million shares. Weight below 0.2%. No mention in quarterly commentary.
Each sale wasn’t a panic move. It was a calculated downgrade in conviction. The narrative shifted. And that’s exactly where ARK’s process shines—or fails, depending on your view.
Why the Reduction Makes Strategic Sense
At $35 per share in early 2024, UiPath trades at about 8x forward sales. That’s cheap compared to 2021’s 25x. But valuation isn’t ARK’s primary driver. Growth trajectory is. And with earnings calls now focused on margin expansion and enterprise retention—not moonshot AI integrations—the stock has lost its speculative glow.
Contrast that with a company like SoundHound AI, which ARK boosted during the same period. Smaller market cap, unproven but explosive voice-AI potential, partnerships with automakers. That’s the new story.
UiPath vs. Palantir vs. C3.ai: The Automation Triad in ARK’s Crosshairs
It’s a bit like watching a relay race where the baton keeps getting dropped. UiPath led the RPA wave. Palantir now dominates AI-driven government and defense analytics. C3.ai pushes enterprise AI platforms—messy, slow to adopt, but conceptually futuristic.
ARK’s current automation exposure leans toward Palantir (up 48% in 2023) and C3.ai (volatile, up 200%+ in early 2024 on speculation). UiPath? It’s not even in the same heat anymore.
Let’s break it down.
UiPath: Stable, profitable, slow-growth. 14% YoY revenue increase. $1.8B ARR. Trading below historical multiples.
Palantir: 25% growth, AIP platform driving 70% of revenue. $2.4B TCV. ARK holding: 12.3 million shares (up from zero in 2020).
C3.ai: 18% growth, but narrative-driven. Contracts with the U.S. Air Force, Shell. High customer concentration risk. Yet ARK holds a 4.5% stake in C3.AI ETF.
Why favor C3.ai over UiPath? Because the story matters more than the balance sheet. And that’s where conventional wisdom gets it wrong—ARK isn’t trying to pick the best-run company. They’re picking the most overhyped future.
Market Position and Growth Trajectories Compared
UiPath’s moat is real—over 10,000 customers, deep integration with Microsoft, SAP, Oracle. But it’s becoming a utility. Like Salesforce in the 2000s. Useful? Yes. Disruptive? We’re far from it.
Palantir, meanwhile, is embedding AI into national security. That’s inherently more explosive. And while C3.ai’s revenue is a fraction of UiPath’s, its partnerships with oil giants and defense contractors give it geopolitical weight.
ARK’s Strategic Bets on Future Automation Leaders
The bet now is on AI agents, not bots. UiPath automates tasks. Palantir’s AIP builds decision engines. C3.ai aims for predictive enterprise control. The shift is subtle but massive. It’s like moving from calculators to quantum computing—even if the quantum part isn’t quite ready.
ARK’s recent commentary mentions “autonomous systems” 27 times in Q1 2024 reports. “Robotic process automation”? Zero mentions. That tells you everything.
Frequently Asked Questions
How much UiPath does Cathie Wood personally own?
None. Cathie Wood doesn’t own individual stocks in a personal capacity that’s publicly disclosed. Her exposure is entirely through the funds she manages. Any ownership is institutional, not individual. So when we say “Cathie Wood owns UiPath,” we really mean ARK Invest does—on behalf of shareholders.
Why did ARK reduce its UiPath stake so drastically?
Slowing growth, lack of AI narrative alignment, and better opportunities elsewhere. In short: the risk-reward no longer justified the position size. A 3% holding demands 40%+ growth. UiPath’s guidance? Mid-teens. That’s solid—but not transformative.
Is UiPath still a buy for growth investors?
Depends on your timeline. If you want stable SaaS growth with profitability, yes. The stock yields no revenue growth but trades cheap. If you’re chasing 10x returns, look elsewhere. The explosive phase is over. Honestly, it is unclear whether the AI integration efforts will reignite momentum—or just burn cash.
The Bottom Line
Yes, Cathie Wood—via her funds—still owns UiPath. But calling it a “position” is generous. It’s a rounding error. The real story isn’t the holding. It’s the exit strategy. ARK didn’t just sell UiPath. They redefined what automation means in their portfolio.
I am convinced that ARK’s pivot reflects a broader truth: in tech investing, the narrative trumps fundamentals until it doesn’t. UiPath was a victim of its own maturity. Success killed its disruptor status.
That said, for long-term investors, UiPath might be a stealth play. It’s profitable, has cash flow, and could be acquired. Microsoft or SAP buying it for $50 per share? That’s possible. But that’s not ARK’s game. They want the next wave, not the last crest.
So do I recommend UiPath now? For cautious investors, yes—with limitations. But if you’re waiting for Cathie Wood to come back in, don’t hold your breath. She’s already moved on. And that’s the thing about disruption: it never looks back.