Why is the Appen share price smashing the ASX 300 today?

It's been a stellar day on the market for the artifical intelligence data company.

Key points
  • Appen shares are having a stellar day, gaining 5% in afternoon trading 
  • Multiple ASX technology shares are also in the green 
  • This follows the Nasdaq lifting on US markets overnight 

The S&P/ASX 300 (ASX: XKO) is up 1.36% in afternoon trading, but one technology share is soaring higher.

The Appen Ltd (ASX: APX) share price has gained 5.36% at the time of writing and is currently trading at its intraday high of $2.75.

So why is Appen having such a good day?

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.

Image source: Getty Images

Tech shares rise

The Appen share price is on the rise today, but it's not the only ASX technology share in the green. The Megaport Ltd (ASX: MP1) share price is also up 5.6% today while Wisetech Global Ltd (ASX: WTC) shares are up 3.09%. Meantime, the Block Inc (ASX: SQ2) share price is surging an impressive 8.57% today.

ASX technology shares are following in the footsteps of their US counterparts. The Nasdaq Composite Index lifted 3.43% in the US overnight. Apple Inc (NASDAQ: AAPL) shares rose 2.91%, while the Microsoft Corporation (NASDAQ: MSFT) share price jumped 3.92%.

The US market lifted after big names, including Bank of America Corp (NYSE: BAC), reported better-than-expected results. CNBC noted many technology names including Netflix, Tesla, and IBM are due to report this week.

The S&P/ASX All Technology Index (ASX: XTX) is up 3.2% at the time of writing.

Appen updated the market on its outlook for the rest of 2022 last week. The company advised there has been "no improvement" in trading conditions over August and September. Appen CEO Mark Bryan said:

Despite the challenging operating conditions, we remain committed to our long-term strategy including investments in New Markets to diversify revenue and products to improve productivity.

Share price snapshot

The Appen share price has sunk nearly 76% year to date, while it is down 72% in the past year.

For perspective, the ASX 300 has dropped almost 10% in 2022 so far and 9% over the past 12 months.

Appen has a market capitalisation of about $339 million based on the current share price.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Monica O'Shea 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, Apple, MEGAPORT FPO, Microsoft, and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Apple and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.
Technology Shares

Should I buy Pro Medicus shares after its big news?

Another US contract adds to a growth story I think still has a long way to run.

Read more »

Man lying down on sofa and trading on his laptop.
Technology Shares

Zip to consolidate shares 5-for-1 in 2026: What shareholders need to know

Zip plans to consolidate shares 5-for-1, pending shareholder approval at its 2026 AGM.

Read more »

Woman with her kitten on a laptop in her home office.
Technology Shares

Should I buy WiseTech shares after today's big news?

I take another look at the tech stock after an important source of uncertainty was removed.

Read more »

a man sits at a computer in deep thought with hand on chin in a darkened room as though it is late and night and he is working on cybersecurity issues.
Technology Shares

Down 11% in a month: Is it time to buy Xero shares?

Have the ASX tech shares now bottomed? Or is there more downside coming?

Read more »

A group of seven young people of different genders and cultural backgrounds stand in a group with serious expressions wearing casual young persons' attire.
Technology Shares

Nextdc vs WiseTech: Which ASX tech stock is better for a 25 year old investor?

Weighing Nextdc vs WiseTech Global for a young investor? Here’s which ASX tech stock I think deserves the spot in…

Read more »

Man analysing data on his laptop.
Technology Shares

Why this rapidly growing ASX drone stock could rise 36%

Bell Potter has a lot of good things to say about this company.

Read more »

Happy mum and dad with daughter smiling on couch after relocation to new home.
Technology Shares

Down almost 40%, are Life360 shares a strong buy in October?

Bell Potter thinks this tech stock could deliver big returns.

Read more »

A group of seven young people of different genders and cultural backgrounds stand in a group with serious expressions wearing casual young persons' attire.
Technology Shares

Xero vs Megaport: Which ASX tech stock suits young investors better?

I break down Xero vs Megaport shares for young investors — with a clear verdict on which tech stock I’d…

Read more »