Afternoon regards,
Posting this before earnings at close today just in case the “you could’ve posted this before a 30% day” crowd shows up tomorrow. Also welcoming the “power outlet guy holding knife to weiner” gang if I am wrong. This post is not ai generated, GFYS.
PATH offers software to integrate agentic AI and legacy software that otherwise cannot be integrated with AI. Let software robots carry out low skill repetitive tasks. Eliminate jobs, drive margins. Essentially, PATH is providing a bridge between the most advanced technology in the world and the legacy systems that keep the underlying gears turning. While thousands of pimple faced Silicon Valley college dropouts are trying to develop new VC funded AI integrated software, PATH is providing means to integrate AI with existing solutions. Complete replacement of enterprise level software systems is a bitch.
PATH’s current market cap is 6.2B, \~4x last year’s revenue. The company is sitting on 1.5B in cash and has displayed strong revenue growth the past several years. Last FY was their first positive EPS print, and it’s onward and upward from here.
For productivity gains to be realized from AI, integration with EXISTING software systems is absolutely critical. I think PATH provides an invaluable platform and is poised for accelerating growth as corporate AI adoption picks up.
TL;DR:
PATH connects cutting edge AI and legacy software to eliminate low skill jobs. PATH is undervalued and is sitting on many cashes, exhibiting solid growth. Growth will accelerate as enterprise AI adoption ramps up.
Position: 10 x Jan ‘27 15c (I’m poor). Hoping to exercise next year.