Appen share price sinks to another multi-year low despite new recruits

Appen shares just can't stop falling…

| More on:
A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.

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 disappointing slide on Friday.

In afternoon trade, the artificial intelligence data services company's shares are down almost 3% to $2.49.

At one stage today, the Appen share price hit a multi-year low of $2.46, a far cry from its 2020 high of $43.66.

Not even the announcement of some new recruits has been able to keep Appen's shares in positive territory today.

What did Appen announce?

This morning Appen announced the appointment of Mini Peiris as an independent non-executive director.

Ms Peiris is currently the chief marketing officer of Doma, which is a technology company innovating the real estate market.

Appen chair, Richard Freudenstein, said:

We are delighted to welcome Mini to the Appen Board, as we continue our process of Board renewal. Mini is an experienced executive having worked extensively in Silicon Valley. She has led digital transformation and strategic change at several well-known high-tech companies. She has a successful track record in business-to-business marketing and in scaling and changing business models for both small high-growth companies and large enterprises.

In addition, Appen announced that Sean Carithers has joined the company as senior vice president, global. The company notes that Carithers is a seasoned executive with deep expertise in markets relevant to Appen and has successfully transformed and grown large businesses.

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

Investors have been selling down the Appen share price again this year due to its abject performance.

And, unfortunately, with many of its key customers struggling right now, such as Meta (Facebook), there are concerns that demand for its services could lessen further.

In addition, investors appear concerned by increasing competition in the industry from the likes of Amazon and Sagemaker.

For example, last week, Morgan Stanley put an underweight rating and $2.25 price target on Appen's shares. This was due partly to the intense competition and more sophisticated platforms being offered from rivals.

Elsewhere, last month, JP Morgan reiterated its underweight rating and warned that Appen could require a capital raising if its performance doesn't improve in the near future.

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.

More on 52-Week Lows

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
52-Week Lows

Are Telstra shares a no-brainer for income after hitting a fresh 52-week low?

Let's see what analysts think of the telco giant's shares at this level.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Industrials Shares

Why is this ASX 200 stock crashing 16% to a 52-week low on Tuesday?

This stock is having a very red start to the week.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today
52-Week Lows

3 ASX shares sinking to 52-week lows today

These ASX shares are having a bit of a nightmare this year.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
52-Week Lows

Star Entertainment share price crashes 26% upon return to trade

This is a new 52-week low.

Read more »

Rede arrow on a stock market chart going down.
Materials Shares

Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows

Lithium stocks like Core are exploring new lows today.

Read more »

A man looks nervous as he inflates a balloon, scared it might pop.
Materials Shares

Arafura share price resets 52-week low after quarterly update

The rare earths explorer also announced the results of its share purchase plan today.

Read more »

A woman stands at her desk looking a her phone with a panoramic view of the harbour bridge in the windows behind her with work colleagues in the background.
Industrials Shares

APM shares rebound on Friday following 40% thrashing on weaker profit news

The international employment services company was punished for its 1H FY24 update.

Read more »

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

3 ASX 200 stocks starting the new year at near 52-week lows

Are these stocks buying opportunities?

Read more »