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Why is the Appen share price surging 11% on Thursday?

This tech share is back on form on Thursday…

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James Mickleboro
Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
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The Appen Ltd (ASX: APX) share price has returned to form on Thursday.

In afternoon trade, the struggling artificial intelligence data services company's shares are up 11% to $2.96.

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price

Image source: Getty Images

Why is the Appen share price on fire today?

The Appen share price has taken off on Thursday despite there being no news out of the company.

However, it is worth noting that the tech sector is rebounding strongly today following a stellar night of trade on Wall Street's tech-focused Nasdaq index.

Investors were bidding tech stocks higher overnight after the US Federal Reserve suggested that supersized interest rate hikes may now be behind us. This follows promising signs that inflation has now peaked.

It isn't just the Appen share price that is rising strongly today on the news. Here's a summary of how other beaten down ASX tech shares are performing:

  • The Block Inc (ASX: SQ2) share price is up 6.5%
  • The Kogan.com Ltd (ASX: KGN) share price is up 4%
  • The Megaport Ltd (ASX: MP1) share price is up 5.5%
  • The Xero Limited (ASX: XRO) share price is up 6.5%

Though, it is worth noting that despite today's strong gain, Appen's shares remains down almost 75% since the start of the year.

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen, Block, Kogan.com, Megaport, and Xero. The Motley Fool Australia has positions in and has recommended Block, Kogan.com, and Xero. The Motley Fool Australia has recommended Megaport. 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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