Appen (ASX:APX) share price rises further following investor presentation

The Appen share price has continued its good form and risen again today. Here's the latest on this ASX WAAAX share.

| More on:
A man is connected via his laptop or smart phone using cloud tech, indicating share price movement for ASX tech shares and asx tech shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Appen Ltd (ASX: APX) share price has continued its good form of the week so far, and is up another 3.18% today to $13.62 a share at the time of writing. This move comes after the tech company rocketed more than 19% in value yesterday on the back of a business update the company gave to investors.

But these rises pale against the losses investors have suffered on Appen shares in recent months. Since reaching a peak of $43.66 in August last year, Appen has been locked in a nasty share price slide, which saw the company's shares lose more than 65% of their value on today's pricing. As recently as Monday, these losses were as high as 72%.

But investors seemed to have a decisive change of heart yesterday, when the company increased its market capitalisation by a fifth in one trading session. The catalyst for this bold move? The aforementioned business and trading update.

As we covered yesterday, Appen announced a business restructure that will result in the company having four customer-facing business units. These will be global, enterprise, China, and government.

Appen also announced that it would be moving to report in US dollars.

In terms of the trading update, the company announced that it is on track to deliver underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of US$83-90 million in FY 2021. That's in line with its previous guidance. This would translate into a growth rate of 18-28% from FY 2020.

Appen shares rise after investor day presentation

So what's changed today? Well, Appen held an investor technology day presentation this morning, the contents of which it has disclosed to the markets.

There wasn't a lot of new information that built on what Appen discussed yesterday. However, the company did discuss its restructuring plans (or 'evolution') as well as how it's positioning its business models for future growth. Appen also laid out its plans for new products, which include Appen Intelligence, Appen In-Platform Audit and Appen Mobile.

Investors have clearly liked what they have seen, given the Appen share price reaction today. Appen is now up more than 25% since the lows it was hitting just last Friday.

Investors will no doubt be hoping that it's only up from here, and this marks Appen's return to its glory days. We will have to wait and see if that proves the case, but the performance over the past 2 days is a good start to that end. At the current share price, Appen has a market capitalisation of $1.69 billion.

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of 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 Bruce Jackson.

More on Technology Shares

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Technology Shares

Why is the EML share price crashing 33% today?

This payments company's shares are falling heavily today. But why?

Read more »

Five happy friends on their phones.

Buy these exciting ASX tech ETFs in December

These ETF give investors access to some high-quality tech stocks from across the globe.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
Technology Shares

Is the Appen share price finally good value after crashing 75% in a year?

Is this beaten down tech stock a buy or one to avoid?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Technology Shares

Why is the WiseTech share price ending the week in the red?

This tech stock is under pressure on Friday. But why?

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Technology Shares

Should you buy this ASX 200 tech stock following its results?

Goldman Sachs has given its verdict on this tech stock.

Read more »

A man stands in front of a chart with an arrow going down and slaps his forehead in frustration.
Technology Shares

Why is the Appen share price crashing 38% on Thursday?

Why is this former market darling sinking deep into the red today?

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Technology Shares

What's sending the Brainchip share price 8% lower today?

This struggling tech stock just lost the brains of its operation.

Read more »

a group of tech people gather around a computer operated by a young woman while the group looks on in support.
Technology Shares

Nvidia shares in focus after Q3 earnings smash expectations thanks to AI boom

This tech giant is growing at a spectacular rate thanks to artificial intelligence.

Read more »