Why did the Appen share price just hit a 5-year low?

The Appen share price has continued its slide on Monday…

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The Appen Ltd (ASX: APX) share price continued its slide on Monday.

At one stage, the artificial intelligence data services company's shares were down over 6% to a five-year low of $3.65.

Furthermore, when its shares hit that level, it meant that they had lost 36% of their value since this time last month.

Why is the Appen share price at a five-year low?

Let's start with today's decline. The Appen share price was sold off today after tech shares crashed lower on Wall Street's NASDAQ index on Friday night.

This was driven by comments out of the US Federal Reserve which indicated that it would aggressively raise rates to fight inflation. And while the market has been expecting rates to rise, the general consensus is now that rates will be higher for longer than previously expected.

It wasn't just the Appen share price falling today. The S&P ASX All Technology index dropped a sizeable 4%.

What else?

Also weighing on Appen's shares has been the recent release of its half year results for FY 2022.

For the 12 months ended 30 June, Appen posted a loss after tax of US$9.4 million. This was down from a profit of US$6.7 million during the prior corresponding period.

In response to the result, the team at Macquarie retained its underperform rating and cut its price target to $3.30. Whereas the team at Ord Minnett downgraded Appen's shares to a sell rating and slashed its price target on them to $3.00.

Unfortunately, based on these broker notes, the Appen share price may not have found a bottom yet despite its recent weakness.

Motley Fool contributor James Mickleboro 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.

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