Why did the Appen share price crash 15% today?

Appen shares remain up more than 250% this year.

| More on:
A man looking at his laptop and thinking.

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

It's been a rough start to the trading week this Monday for most ASX shares. At the time of writing, the All Ordinaries Index (ASX: XAO) has lost a significant 0.46% and is back down to around 8,510 points. But let's talk about what's happening with the Appen Ltd (ASX: APX) share price.

Appen shares are having a truly awful day today. This ASX tech stock and artificial intelligence (AI) data company closed at $2.57 a share on Friday afternoon. But today, those same shares opened at $2.51 before dropping as low as $2.18 in afternoon trading – a crash worth 15% at the time. At the time of writing, Appen has recovered a little but remains down by a painful 12.06% at $2.26.

So, what on earth is going on with Appen shares that might explain this nasty drop?

Why has the Appen share price tanked 15% today?

Well, the strange thing is that this fall seems to have no obvious catalysts at all. There hasn't been any fresh news out of Appen itself for quite a long time. The last ASX notice this company posted was back on 6 December. And that was just some routine paperwork.

Additionally, there are no other obvious developments, last week nor today, that can easily explain the hard time this stock is having.

Saying all of that, a look at Appen's recent share price performance might yield some clues about today's big fall.

Appen shares have shown exceptional volatility over 2024. This company's share price range this year extends from just 26 cents to $2.90 a share. Between February and mid-November, the Appen share price rose by close to 1,000%.

During the past month alone, Appen has fluctuated between $2.07 and $2.60 – a difference worth 25.6%. Check all of that out for yourself below:

Today's big fall might potentially represent a pullback from the runup in the Appen share price last week. Appen had a very lucrative week indeed, shooting up around 19% between Monday and Friday's session.

Friday alone saw the company rocket more than 11% higher. Given last week's dramatic surge in pricing, it's possible that investors are simply taking some of these very rapid profits off the table today.

With no other concrete developments to point to, this seems as likely an explanation as any for the Appen share price's rough start to the week this Monday.

At the current Appen share price, this ASX tech stock has a market capitalisation of $581 million.

Motley Fool contributor Sebastian Bowen 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. 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 Technology Shares

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Technology Shares

Which ASX 200 technology stock will pay the best dividend yield in 2025?

Earnings season is underway and dividend announcements are on investors' minds.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX 200 technology stocks led the market with a 1.99% rise while the benchmark index slipped 0.24%.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

2 ASX tech stocks to buy during an anticipated 15% to 20% sector pullback in 2025

Expert reveals 2 of his favourite tech stocks and at what prices we should buy them during a dip.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

Life360 shares: A generational opportunity to get rich?

I think the Life360 share price could more than double again in the year ahead.

Read more »

a woman sitting at a desk checks an old fashioned calendar resting against her wall as she sits with documents in front of her.
Technology Shares

Own WiseTech shares? You need to know about these dates in 2025

Put these dates in your calendar.

Read more »

a young child wearing a cardigan and thick black glasses places his hand on a nearly rounded object and his hair lifts at right angles to his head thanks to static electricity.
Technology Shares

Up 223% in a year, why this ASX 200 tech stock could keep surging higher in 2025

A leading expert expects the ASX 200 tech company to provide strong 2025 earnings guidance.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Pro Medicus shares jump to record high on big news

This high-flying stock keeps breaking records. Here's what is happening today.

Read more »

man thinking about whether to invest in bitcoin
Technology Shares

Should you buy WiseTech shares before earnings season?

Is this tech star a buy? Let's see what analysts are saying about it.

Read more »