PATH, S, CRM Stocks Hit 52-Week Lows: What's Driving The Selloff?

• UiPath and SentinelOne stocks hit record lows on Friday.
• Last week, Anthropic previewed its new AI model, Mythos, with cybersecurity applications, and launched a new product that makes it easier for enterprises to build and deploy AI agents.
• Retail investors appeared to be favoring CRM for a potential rebound.

UiPath, SentinelOne, and Salesforce stocks sank to fresh multi-year intraday lows last week, as selling pressure across key software names intensified, driven by concerns over Anthropic’s advances.

Investors were also parsing the latest updates from the United States regarding its military campaign in Iran, which would dictate the trading in the broader market. 

U.S. stock futures dipped after talks between the two sides in Pakistan ended without an agreement and the U.S. said it would begin a blockade of all Iranian ports on Monday.

What's Driving PATH, S, CRM Lower?

Shares of UiPath and SentinelOne dropped to record lows on Friday as selling pressure continued in the software sector. Anthropic is gaining business and launching new AI tools at a rapid clip; its advances have become a major trigger for investors rotating their money out of software stocks.

Last week, Anthropic previewed its new AI model, Mythos, with cybersecurity applications, and launched a new product that makes it easier for enterprises to build and deploy AI agents.

UiPath shares declined 5.6% to $9.38 on Friday. The stock has declined for five days straight and is now at its lowest point since the company’s initial public offering in April 2021.

SentinelOne shares declined 6.5% to $11.94 on Friday, also their lowest level on record.

Despite new partnerships with Google Cloud and AI-baked security offerings announced recently, PATH shares have slid, prompting analysts to lower their price targets. Morgan Staley, JPMorgan, Citi were among the brokerages to reduce their targets after the company’s earnings report on March 11.

The business is clearly showing solid diversification beyond endpoint as drivers such as Cloud and Data scale, but overall growth continues to decelerate, Piper Sandler said. The analyst reduced its target on the stock to $15 from $17; the target implies 60% upside from the stock’s last close.

Salesforce shares declined 3.5% to $164.96, their lowest point in three years. The stock has declined for five days straight. Salesforce, a major enterprise focused software company, is one of the main stocks investors are watching for a potential rebound.

What Retail Traders Think About PATH, S, CRM?

On Stocktwits, the retail sentiment for CRM climbed over the past week and was ‘extremely bullish’ overnight heading into Monday.

“$CRM in the face of a high market this seems to be one of the best values out there,” a trader said. Another wrote: “$CRM steady grind higher not much selling pressure. 

The sentiment for S remained ‘bearish,’ while that for PATH inched up at the end of the week to ‘neutral.’ As of their last close, CRM is down 38% year to date, while PATH is down 43% and S is down 20%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.