AppLovin Corporation APP and UiPath Inc. PATH are two prominent players leveraging artificial intelligence to transform digital operations. AppLovin operates in the mobile ad tech space, using AI to optimize app monetization and user acquisition. UiPath, on the other hand, leads the robotic process automation sector (RPA), applying AI to streamline enterprise workflows.

As AI becomes an integral part of modern business software, the key question is: Which of these AI-driven tech stocks presents a more compelling investment opportunity today? Let’s examine their fundamentals, growth drivers and valuations.

The Case for AppLovin

AppLovin’s ability to integrate AI into its ad tech platform gives it a strong edge, particularly as mobile advertisers increasingly seek performance-based solutions. Its strategic focus on gaming and non-gaming app monetization has broadened its addressable market and diversified its revenue base.

AppLovin is actively transforming into a pure-play advertising platform, sharpening its focus on high-growth, high-margin segments. A major milestone in this transition was the $900 million sale of its gaming unit to Tripledot Studios. This divestiture allows APP to concentrate on its ad technology, a move that aligns with its vision of serving the global digital advertising market, which includes over 10 million businesses. To capitalize on this vast market, the company is investing in automation, developing advanced tools to enhance customer efficiency and maximize ad performance.

AppLovin has made notable progress in boosting profitability while scaling its AI capabilities. In the fourth quarter of 2024, the company's revenues surged 44% year over year, driven by robust demand for its AXON ad engine, which uses machine learning to optimize ad targeting. Adjusted EBITDA jumped 78% year over year and 17.5% sequentially, showcasing improved operational efficiency. Net income skyrocketed 248% from the prior year and 38% sequentially, demonstrating APP’s ability to translate revenue growth into significant profitability.

The Case for UiPath

UiPath is a leader in the rapidly expanding RPA market, which is expected to experience significant growth in the coming years. Its comprehensive automation platform positions it favorably to capitalize on the increasing demand for AI-driven automation solutions.

Despite the tight competition, PATH continues to grow through strategic collaborations with a global network of partners, including industry leaders such as Microsoft, Amazon AWS, and Salesforce. In the fourth quarter of fiscal 2025, UiPath achieved a 5% year-over-year revenue increase, reaching $424 million. The company’s annual recurring revenues rose to $1.67 billion during the quarter, representing 14% growth compared to the previous year. This performance highlights its effectiveness in expanding subscription-based services and maintaining strong customer retention.

Key product innovations such as AI Computer Vision, document understanding, and integration with large language models position UiPath to capture growing AI-driven automation spending. The company also benefits from a high net revenue retention rate and deep enterprise relationships.

How Do Zacks Estimates Compare for APP & PATH?

The Zacks Consensus Estimate for AppLovin’s 2025 sales and EPS indicates year-over-year growth of 20% and 51%, respectively. EPS estimates have been trending upward over the past 30 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for UiPath’s 2025 sales suggests a 7% year-over-year growth while EPS is expected to remain flat. EPS estimates have been trending downward over the past 30 days.

Image Source: Zacks Investment Research

UiPath’s Valuation More Attractive Than AppLovin

UiPath is trading at a forward sales multiple of 3.51X, below its 12-month median of 4.61X. AppLovin’s forward sales multiple stands at 13.4X, above its median of 9.77X.

Image Source: Zacks Investment Research

Verdict

While UiPath holds promise in enterprise automation, AppLovin stands out as the stronger investment today. With accelerating revenue growth, rising profitability, and a sharpened focus on its high-margin ad tech business, AppLovin is executing effectively in a scalable, AI-driven market. Its recent divestiture of the gaming unit further aligns with long-term strategy, and upward-trending Zacks estimates reinforce investor confidence. In contrast, UiPath remains a solid contender with a strong enterprise footprint, but AppLovin’s superior financial momentum and strategic clarity make it the more compelling buy, even with both stocks sporting a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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