Jason Luongo
Growth-Stock Options Trader, LEAPS & Income Strategies
UiPath won't get ripped out because its automation platform is now built into Microsoft's security stack, as enterprise automation moves from nice-to-have to embedded infrastructure. Its new Microsoft partnership integrates security automation directly into Defender, Sentinel and Security Copilot. x.comÂ
UiPath's real story is distribution through Microsoft, not bots. Per @JasonL_Capital, it partnered with Microsoft to integrate security automation into Defender, Sentinel and Security Copilot. Sitting inside the Microsoft stack lets UiPath inherit Microsoft's enterprise footprint overnight, a sticky position, because enterprise software winners become part of the workflow rather than another tool on top of it. x.comÂ
UiPath will be among the AI winners because AI agents cannot replace everything. Companies still need deterministic automation that is reliable, controllable and free of constant token consumption, and UiPath connects that world with agentic AI. After Q2 FY27 the case is more convincing than ever. x.comÂ
Microsoft is a bigger near-term competitive threat to UiPath than Claude, a point that gets overlooked. Claude is the best standalone model, but large enterprises often block it over security, compliance and data governance, while Microsoft's Copilot is already embedded in daily tools and getting good enough. Microsoft's agentic tools are not yet on par with UiPath and the two are partners for now, and orchestration may leave room for UiPath if management executes. x.com x.comÂ
Microsoft's hold on enterprise software and the cloud running AI makes it one of tech's best positions to own. Fiscal Q1 revenue rose 19% on Azure and the AI stack, while operating income rose 21% and net income 32%. Grade: A. x.comÂ
Microsoft is well placed to win the enterprise AI agent market because it always plays the long game. It has every enterprise account locked in and can afford to give products away for free while it figures out the rest, echoing @RihardJarc's point that distribution remains key in the AI era. x.comÂ
UiPath and integration-software vendors are on the wrong side of GPT-6 Astra's computer-use ability. OpenAI's Greg Brockman argues models that operate software like a person will bypass the APIs, plugins and RPA glue companies pay for. Astra scored 72.6% on OSWorld. If that holds in production, integration budgets shift from middleware to agent sellers. UiPath won't go straight to zero, being embedded in controls, audit logs and multi-year contracts; eight quarters of renewals decide it. x.com … Show more
Microsoft is a relative beneficiary of slower, safety-focused frontier AI, mainly through cybersecurity, though to a lesser degree than CrowdStrike and Palo Alto Networks. Agentic AI risk from misbehaving internal agents and adversaries should make security every enterprise's top priority, driving upgrades to best-of-breed providers and much larger budgets. A paced frontier also lowers extreme tail risk for software broadly. Compute plans should not change, as supply stays severely constrained. … Show more
UiPath, Zeta Global and ServiceNow are discounted because the market treats AI as a pure threat rather than a product accelerator, as it once did with Google, now up 120% this year. They should rerate once investors see that AI makes their products better, faster and more valuable, and that AI still needs real enterprise workflows, data, compliance, automation and execution layers to be useful. x.comÂ
UiPath may carry the highest business-model risk of any SaaS company because LLM agents with computer use compete directly with its robotic process automation. Rivals include Anthropic and OpenAI themselves. Its base is sticky for now, with 97% gross retention, regulated large-enterprise customers and long contracts, giving it time to sell AI tools. Still, it would be very surprising if gross retention stays in the high 90s, and the 2x EV/ARR multiple reflects the threat. x.comÂ
Microsoft's enterprise ecosystem is one of the deepest moats in tech: Azure, M365, security, identity, compliance, distribution and now AI infrastructure reinforce each other and are very hard to disrupt. The market fixated on capex and AI competition, while long-term investors see a fortress balance sheet, pricing power, switching costs and global distribution. Volatility-intolerant investors are handing over an elite compounder at a market multiple, the kind Bill Ackman describes buying. x.comÂ
