The Appen share price is charging 6% higher on Friday

Has Appen found a bottom here?
The post The Appen share price is charging 6% higher on Friday appeared first on The Motley Fool Australia. –

Appen Ltd (ASX: APX) shares are rallying 6.5% higher on Friday, trading at $6.71 apiece at the time of writing.

After a difficult year to date – where shares have faltered more than 40% into the red – the Appen share price has levelled off somewhat in April and is now 5% higher in the past month of trade.

In wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is trading 4% higher on the day as tech shares stage a small rebound.

What’s up with the Appen share price?

Tech stocks continue to take a pummelling in 2022 amid a wave of macroeconomic headwinds.

The combination of soaring inflation, commodity and food prices, rising interest rates and tension in Europe have stirred equity markets this year, and tech stocks have felt the fallout the most.

The tech index is down more than 32% this year to date and has shown no signs of reversing course. Appen is down 40% in the same time, booking extensive losses for shareholders.

Analysts at Macquarie are baking in further downside for ASX tech shares, squashing the hopes of stock pickers hoping to grab a bargain, according to earlier reporting by my Foolish colleague Brendan Lau.

Appen’s earnings were disappointing to those wanting to see a reversal in its share price. Broker JP Morgan downgraded its rating to neutral on the stock, due to the earnings miss.

The broker said in a note to clients that Appen’s 2026 target to double revenue “seems very ambitious given management’s recent track record”.

“[L]ack of visibility on growth and heightened levels of reinvestment means we would prefer to stay on the sidelines until management starts delivering on their guidance,” the broker added.

With market and broker sentiment showing a tilt towards the downside, alongside heavy weakness in the broad sector, a picture begins to form as to why Appen’s share price appears to be in trouble.

Appen share price snapshot

In the last 12 months, the Appen share price has collapsed 40% into the red after losses continued into 2022.

The post The Appen share price is charging 6% higher on Friday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Appen right now?

Before you consider Appen, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Appen wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

How much further can ASX 200 tech shares tumble? Macquarie weighs in
What’s up with the Appen share price on Wednesday?
5 things to watch on the ASX 200 on Tuesday
These are the 10 most shorted ASX shares
The Appen share price is soaring 5% on Thursday. Could this be why?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!