UiPath's stock plummeted 7.47% during intraday trading on Friday. The sharp decline came as the market reacted negatively to the automation software company's first-quarter financial results.

The sell-off was primarily triggered by UiPath's adjusted earnings per share of $0.15 for Q1, which missed the analyst consensus estimate of $0.16. Despite reporting revenue of $418.4 million that significantly exceeded expectations, investors focused on the profitability shortfall, leading to sustained selling pressure throughout the session.

Adding to the negative sentiment, Morgan Stanley lowered its price target on UiPath from $17 to $15, maintaining an Equal Weight rating on the shares. While Bank of America raised its price objective and the company provided revenue guidance slightly above consensus for Q2 and the full year, these positive factors were overshadowed by concerns over the earnings miss.