Appen Ltd (ASX: APX) shares are sinking today.
Shares in the All Ordinaries Index (ASX: XAO) tech stock, which provides data solutions for AI applications, closed on Friday trading for $1.445. In early afternoon trade on Monday, shares are changing hands for $1.355 apiece, down 6.2%.
For some context, the All Ords is down 1.2% at this same time.
Despite today's fall, Appen shares remain up an impressive 108.5% since closing at one-year lows of 65 cents on 21 November.
Without a doubt, then, that would have been an opportune time to buy the All Ords tech stock.
But after more than doubling from those lows, has the train left the station on further gains?
For some greater insight into that question, we defer to MPC Markets' Mark Gardner (courtesy of The Bull).
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Is it too late to buy Appen shares today?
"Appen is a former market darling of technology stocks," Gardner said. "The company built a global business providing the human-labelled data that artificial intelligence systems needed to learn."
However, Gardner expects that the artificial intelligence revolution is going to take a material bite out of the company's future earnings.
Explaining his sell recommendation on Appen shares, he said:
Demand seemed unlimited and the share price reflected optimism, trading above $35 in July 2020. While Appen pays workers to label data, artificial intelligence is getting better at doing the role itself.
Synthetic data generation, automated labelling pipelines and AI systems that can evaluate their own outputs are advancing rapidly. In our view, the recent share price bounce reflects short term sentiment around AI investment themes rather than an improvement in the structural outlook.
Gardner concluded, "The company's statutory net loss after tax of US$21.8 million in full year 2025 was up from a US$20 million loss in the prior corresponding period. The shares were trading at $1.565 on March 26, 2026."
What's the latest from the ASX All Ords tech stock?
Appen reported its full-year 2025 results, which Gardner mentioned above, on 25 February.
Despite the company's full-year loss, Appen shares closed up 27.6% on the day of the release.
Investors reacted positively to the company's 4.5% year-over-year increase in operating revenue to $230.8 million.
On the earnings front, the company achieved a 251% increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), before FX, to $12.2 million.
"FY25 was pleasing as we saw durable improvements to the business, with new wins in generative AI, operational efficiencies, and the revenue trajectory throughout the year," Appen CEO Ryan Kolln said.
