Some could benefit as conditions improve, while others may need to adapt to substantial changes in their markets.

Here's how I would rate these shares today.

Appen Ltd (ASX: APX)

Appen shares are a hold for me. The company helps developers train and improve artificial intelligence (AI) models, putting it in an industry that continues to attract enormous investment.

But I have mixed feelings about its long-term prospects. AI models are becoming increasingly sophisticated, with synthetic data and automated evaluation potentially reducing the need for some traditional training services.

At the same time, more advanced AI creates demand for specialist data, human evaluation, and expert input in complex areas such as coding and mathematics. Appen could benefit from these opportunities.

Its recent results provide some encouragement. Revenue increased 17% in the first half of FY26, supported by particularly strong growth in China.

But the recovery remains uneven. Revenue from its Global business declined 27%, suggesting Appen still faces challenges replacing traditional work with newer AI projects.

I am also concerned about its reliance on a relatively small number of major technology customers, whose spending priorities can change quickly.

For me, the question is whether Appen can build a consistently profitable business as AI technology evolves. I think there is enough progress to justify holding the shares, but I would want clearer evidence of sustainable growth before buying.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is a patient buy in my view. The travel company has faced a challenging period, with geopolitical tensions disrupting travel plans and higher fuel prices contributing to more expensive airfares.

But I think the work Flight Centre has done during this difficult period could pay off when conditions improve.

Management has materially reduced costs, leaving the business in a stronger position to benefit when travel demand picks up.

It has also strengthened its offering through acquisitions made around the bottom of the travel cycle, expanding its presence in specialist and higher-value travel markets.

I particularly like its position in corporate travel. Flight Centre has built a substantial global business serving companies that need help managing employee travel, bookings, and expenses.

That gives it an established customer base and opportunities to capture more business as corporate travel spending improves.

For me, the combination of a leaner cost base, a broader offering, and a strong corporate travel business could support a meaningful recovery in earnings.

I don't expect conditions to improve overnight, particularly given the uncertainty surrounding international travel. But I would be happy to buy Flight Centre shares with a long-term view and give the recovery time to play out.

Telstra Group Ltd (ASX: TLS)

Telstra shares would be a buy for income investors. The telecommunications company has a substantial mobile network, millions of customers, and an established position in an industry that has become essential to everyday life.

I like the relatively dependable demand for its services, which helps support regular dividends.

Telstra paid 21 cents per share in FY26, and management is targeting further earnings growth under its Connected Future 30 strategy. That could provide room for dividends to increase gradually.

There is one longer-term development I would be watching, though. SpaceX has been expanding Starlink's mobile capabilities and recently agreed to acquire approximately US$8 billion worth of mobile spectrum in the United States. 

I think that is a significant development, as it suggests SpaceX has ambitions to compete more directly with traditional telecommunications companies.

But for now, I think Telstra's extensive infrastructure and network capacity give it a strong competitive position, particularly in populated areas.

As such, I think Telstra remains a good option for investors seeking dependable income.

Foolish takeaway

I would be happy buying Flight Centre and Telstra shares today, with the former offering recovery potential and the latter providing a more dependable source of income.

Appen is one I would continue holding for now. Its recent progress is encouraging, but I think it still has more to prove before I would consider adding to my position.

The post Buy, hold, sell: Appen, Flight Centre, and Telstra shares appeared first on The Motley Fool Australia.

The Appen share price is currently up 6.58% to $1.215, after closing yesterday at $1.14.

That takes the artificial intelligence (AI) data company's gains to around 15% over the past week and more than 50% in 2026.

There doesn't appear to be any new price-sensitive announcements from Appen today.

Instead, its shares look to be getting a lift from a big day across the tech sector.

So, let's take a closer look.

Tech stocks rally

The S&P/ASX All Technology Index (ASX: XTX) is one of the best-performing areas of the market today, climbing around 2.2%.

That's well ahead of the S&P/ASX 200 Index (ASX: XJO), which is trading basically flat at the time of writing.

Several big-name tech shares are also pushing higher, adding to the positive mood across the sector.

Appen's exposure to AI could also be helping, particularly after another solid session for tech stocks in the US overnight.

But it's also worth remembering that Appen shares can move around quite a bit.

The stock jumped more than 7% on 22 September and another 8% the following day, before giving back some of those gains later in the week.

What's happening at Appen?

Away from today's share price move, things have also been looking a bit better at Appen lately.

The company reported revenue of US$119.9 million for the first half, up 17.5% from a year earlier.

Underlying EBITDA before foreign exchange also improved by US$7.5 million to US$5.3 million.

China continues to do most of the heavy lifting.

Revenue from Appen China jumped 80.4% to US$76.2 million, helped by continued demand for AI-related data services.

The Global business hasn't been as impressive, although things improved in the June quarter.

Revenue came in at US$23.8 million, up 20% from the March quarter.

Appen is still expecting FY26 revenue of between US$270 million and US$300 million.

It is also targeting an underlying EBITDA margin before foreign exchange of around 5% to 10%.

Where to from here?

After climbing more than 50% this year, Appen shares have certainly had a much better run in 2026.

And today's 6% jump adds to what has already been a pretty good September.

For me, the next test will be whether Appen can deliver on its FY26 guidance and keep the recent improvement going.

There's still a long way to go before the company returns to the levels seen a few years ago.

The post Why is the Appen share price jumping 6% today? appeared first on The Motley Fool Australia.

That scarcity could create opportunities for investors willing to look beyond the obvious names. A handful of smaller ASX AI companies offer exposure to the long-term AI theme, with potential catalysts that could drive significant growth if execution improves.

Two names attracting increasing attention are Appen Ltd (ASX: APX) and Macquarie Technology Group Ltd (ASX: MAQ).

Appen: A risky AI turnaround play

Appen sits directly inside the AI ecosystem. The company provides training data used by many artificial intelligence models, helping businesses build and improve machine learning systems.

However, the journey has been far from smooth. The ASX AI share surged 71% to an annual high of $1.90 in January after a strong quarterly update boosted investor confidence. That optimism faded quickly after the company's next update in April.

While revenue increased 9% to $54.8 million, investors were disappointed by the company's weak profitability. Appen Global's performance was a particular concern, with revenue falling 37% to $19.9 million.

The result triggered a sharp sell-off, sending shares down around 30%. Since then, the recovery has failed to materialise, with Appen shares trading near $0.86 and down around 30% over the past year.

Management has since reaffirmed FY26 revenue guidance of between $270 million and $300 million, ahead of FY25 revenue of $231 million. The key question now is whether demand for AI training data can translate into stronger earnings.

If Appen can prove its turnaround is working, secure new partnerships, and return to sustainable growth, the market could quickly reassess the company's value.

The next major test arrives with its first-half FY26 results in late August.

Macquarie Technology: The infrastructure behind AI

While many investors focus on AI software companies, Macquarie Technology is targeting the infrastructure powering the revolution.

The company operates data centres, cloud services, cybersecurity solutions, and sovereign hosting platforms — all areas expected to benefit from rising AI adoption.

In March, Macquarie Technology secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation.

The funding will support the expansion of sovereign cloud, cybersecurity, and AI infrastructure for government agencies, defence organisations, and critical industries.

Unlike many speculative AI plays, Macquarie Technology already has a profitable business. The ASX AI share has delivered 20 consecutive half-years of operating income growth, demonstrating consistent execution.

As demand for data centre capacity continues rising, additional infrastructure coming online could provide a significant earnings boost.

If investors begin valuing Macquarie Technology closer to established data centre operators such as NextDC Ltd (ASX: NXT), the shares could have further upside.

Foolish takeaway

AI investing is still dominated by global giants, but opportunities exist across the ASX.

Appen offers a higher-risk turnaround opportunity tied directly to AI model development, while Macquarie Technology provides exposure to the essential infrastructure supporting the AI boom.

Neither ASX AI share is guaranteed to succeed, but both show why investors shouldn't overlook the smaller companies helping build the next generation of artificial intelligence.

The post These overlooked ASX AI shares could be tomorrow's winners appeared first on The Motley Fool Australia.

At the time of writing, the shares are trading at 83 cents each.

The latest decline means the shares are now down around 4% year to date and 34% lower than this time last year.

What is going on with the ASX AI stock today?

There hasn't been any price-sensitive news out of the artificial intelligence (AI) data company this week to explain the share price crash.

The decline is most likely the result of investors taking their gains off the table after a small rally earlier this week, and perhaps a dip in investor confidence. 

Appen is scheduled to announce its first-half 2026 earnings update in late August, so it could also be that investors are getting nervous about the update.

The AI company has suffered a rough start to 2026. The share price flew 71% higher to an annual high of $1.90 each in late January after it posted a strong quarterly update. 

But sentiment shifted quickly in late April when Appen posted its next quarterly update. The company posted a 9% increase in revenue to $54.8 million, but the results showed it is still barely profitable at an EBITDA level. In addition, the performance of its Appen Global business spooked investors. It reported a 37% decline in revenue to $19.9 million. The share price sank 30% as a result. 

With investor confidence lost, the company has struggled to recoup those losses, with the share price tumbling further to the time of writing.

Management confirmed Appen's FY26 revenue guidance in late May, which created a short-lived spike in confidence. But then the sell-off resumed. Guidance is in the range of $270 million to $300 million. That compares to FY25 revenue of $231 million.

Now investors are looking for evidence that the company's turnaround is continuing and that demand for AI training data is translating into stronger financial performance.

Are Appen shares a buy, sell, or hold?

Analysts are mostly bullish about where Appen shares could travel over the next 12 months.

TradingView data shows two (out of three) analysts have a buy or strong buy rating on the ASX AI stock. The remaining expert has a hold rating.

They all agree there will be some element of upside ahead, though. The average $2.26 target price implies a potential 173% upside at the time of writing. Even the minimum $1.96 target price suggests the shares will climb at least another 137%.

The post Why is this ASX AI stock crashing 8% today? appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are pushing higher:

Appen Ltd (ASX: APX)

The Appen share price is up 11% to $1.25. Investors have been buying the artificial intelligence data services company's shares following the release of an update at its annual general meeting. Appen has reaffirmed its FY 2026 guidance and continues to expect revenue of $270 million to $300 million. Management is also targeting an underlying EBITDA margin before FX of around 5% to 10%. Appen's CEO, Ryan Kolln, said: "We continue to see positive signals on LLM-related growth from both Appen Global and Appen China customers. Tight cost controls remain in place, in keeping with our focus on managing costs in line with the revenue opportunity."

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is up 13% to $20.49. This follows news that the quick service restaurant operator has decided to close its struggling US stores. Guzman Y Gomez's founder and co-CEO, Steven Marks, said: "I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum. Having spent the last 3 months in the US, I realised this was going to take significantly more time and capital than we had expected. In assessing the trajectory of the current network, the Board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital."

Monadelphous Group Ltd (ASX: MND)

The Monadelphous share price is up 2% to $29.97. This morning, this diversified services company announced that it has secured $120 million in new construction and maintenance contracts across the resources and renewable energy sectors. One is from Fortescue Ltd (ASX: FMG) for the battery energy storage system (BESS) construction contract at the Cloudbreak mine.

PMET Resources (ASX: PMT)

The PMET Resources share price is up 5.5% to 69.7 cents. Investors have been buying this critical minerals exploration company's shares after it announced the start of its major 2026 summer-fall exploration campaign at the Shaakichiuwaanaan Property in Canada. It notes that this campaign comprises approximately 45,000 metres of drilling. The Shaakichiuwaanaan Property is the company's flagship asset and hosts one of the largest pegmatite mineral resources and mineral reserves in the world.

The post Why Appen, Guzman Y Gomez, Monadelphous, and PMET shares are racing higher today appeared first on The Motley Fool Australia.

Two of the popular stocks are charging ahead of the 0.6% gains posted by the S&P/ASX 200 Index (ASX: XJO) as we head into the Friday lunch hour, while one is mired in the red.

Here's what's catching investor interest.

Appen shares rocket on bullish AI outlook

Appen shares are off to the races today.

At time of writing, shares in the ASX All Ords AI applications data solutions provider are trading for $1.27 apiece up 13.4%.

The stock is turning heads following its annual general meeting (AGM) today.

Amid the ongoing artificial intelligence revolution, Appen CEO Ryan Kolln noted, "Appen plays a critical role in the AI ecosystem by providing high quality data that is used to build and monitor AI models."

Pleasingly, the ASX tech stock also reaffirmed its fully year FY 2026 revenue guidance to be in the range of $270 million to $300 million. That compares to FY 2025 revenue of $231 million.

"We remain confident in the AI data market and in Appen's ability to meaningfully contribute to the development of leading foundation models," Kolln said, offering a bullish outlook for Appen shares.

Tuas shares sink further on axed M1 acquisition

Tuas shares are sliding today.

Shares in the ASX 200 Singapore-based telecom stock are down 1.3%, changing hands for $2.28 each.

This comes after the company announced the termination of its agreement to acquire Singapore telecom company M1 Limited. Tuas had reported its intentions to acquire M1 last year.

Today, management said that with several conditions precedent remaining unfulfilled by the required date, the company would not move forward with that purchase.

Tuas shares closed down a sharp 16.9% on Wednesday, when news broke that the company's SIMBA mobile business "may have been using radio frequency bands that it was not authorised to use".

Which brings to…

Guzman Y Gomez shares surge on US exit news

Joining Tuas and Appen shares in turning heads today we find Guzman Y Gomez shares.

Shares in the ASX 200 Mexican fast food restaurant chain are up 15.4% at time of writing, swapping hands for $20.87 apiece.

Investors are piling into Guzman Y Gomez shares after the company reported that it was exiting the United States market, where it's been struggling to achieve sales growth.

But investors look to applauding the move, with management stating that the company's Australian business is in "a solid position, with strong growth, world class unit economics and a significant network growth opportunity".

With renewed focus on Australia, Guzman Y Gomez increased its full year FY 2026 Australia Segment earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to around $85 million. That's 29% higher than FY 2025 earnings in Australia.

The post Why is everyone talking about Guzman Y Gomez, Tuas and Appen shares on Friday? appeared first on The Motley Fool Australia.

At the time of writing, the Appen share price is up 8.93% to $1.22.

That move comes after a rough month for shareholders, with the stock down around 25% over the past 4 weeks.

Despite the recent slide, Appen shares are still up about 50% in 2026.

So, what did Appen tell the market today?

Why AI demand is driving the update

At today's Annual General Meeting (AGM), Appen Chief Executive Ryan Kolln focused heavily on the company's role in the AI market.

Appen provides data used to build and improve AI models. That includes human-generated data, model evaluation, speech and audio work, computer vision, coding tasks, and reinforcement learning environments.

The company argues that this work is becoming increasingly valuable as AI models move beyond public data and require more specialised inputs.

As AI models become more advanced, they need more than internet data. They also need people to review answers, test outputs, label information, check quality, and build datasets in complex areas.

Appen said it is already winning work in areas such as robotics annotation, coding vulnerability testing, reinforcement learning environments, multilingual audio models, and multimodal evaluation.

After years of pressure on revenue and margins, the question now is whether Appen can turn that AI demand into steadier growth.

China growth helps the result

The FY25 result gave investors a few signs that the business is stabilising.

Appen reported group revenue of $230.8 million for FY25, up 4.5% on FY24 when excluding the impact of Google.

Underlying EBITDA before foreign exchange (FX) impacts came in at $12.2 million, up 251% on the prior year.

Gross margin also improved to 40.3%, helped by a better mix of generative AI projects.

Appen China was a strong part of the result, with FY25 revenue rising 75% to $102.9 million. Underlying EBITDA before FX lifted to $10.6 million, with the business benefiting from new and expanding LLM-related projects.

Appen Global was still weaker over the full year, with revenue down 21% to $127.9 million. However, management pointed to a much stronger fourth quarter, helped by generative AI work and cost savings.

FY26 guidance stays in place

The other key point from today's update is that Appen has reaffirmed its FY26 guidance.

The company continues to expect revenue of $270 million to $300 million.

It is also targeting an underlying EBITDA margin before FX of around 5% to 10%.

Management said the business continues to see positive signals from LLM-related growth across Appen Global and Appen China.

Furthermore, Appen is also trying to keep costs under control while putting money behind the areas showing revenue growth.

Foolish bottom line

Appen is still a highly volatile stock, but today's update gives investors a few reasons to stay positive.

The company is now seeing stronger demand from AI customers, China is growing quickly, and underlying EBITDA has improved.

The next test is whether Appen can turn the current AI demand into more consistent revenue growth.

The post This ASX AI stock is surging 9% today after a wild month appeared first on The Motley Fool Australia.

That scarcity could create opportunities for investors willing to look beyond the market's obvious winners. A handful of lesser-known ASX AI shares still offer the kind of catalysts, operating leverage, and re-rating potential that could drive outsized returns.

Here are two names increasingly catching investor attention.

Macquarie Technology Group Ltd (ASX: MAQ)

First up is Macquarie Technology. This ASX AI share is rapidly emerging as one of the clearest "picks and shovels" plays on the AI boom.

As artificial intelligence adoption accelerates, demand is exploding for data centres, cloud infrastructure, cyber security, and sovereign hosting solutions. These are exactly the areas where Macquarie Technology is investing aggressively.

In March, the company secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation.

The funding will help accelerate development of sovereign cyber security and cloud services and AI infrastructure for government agencies and defence and critical industries. Management plans to draw down the first $100 million by June 2026 and the second tranche by March 2027.

Unlike many speculative AI stocks, Macquarie Technology already generates meaningful earnings and has very visible demand drivers. The ASX AI share has now delivered 20 consecutive half-years of operating income growth, an impressive track record in any market environment.

As more data centre capacity comes online and utilisation rates rise, earnings could expand rapidly.

If the market begins valuing the company more like established data centre operator NextDC Ltd (ASX: NXT), investors could see significant upside from current levels.

Appen Ltd (ASX: APX)

Then there's Appen. This is unquestionably the more speculative of the two ASX AI shares, but it may also carry the greatest upside potential.

Appen provides training data used by artificial intelligence models, placing it directly in the centre of the generative AI ecosystem.

After several difficult years, there are finally signs the business may be stabilising. For the March quarter, Appen reported revenue of $54.8 million, up 9% from the prior corresponding period. That marks an encouraging shift after a prolonged period of declining sales.

Profitability also improved. Underlying EBITDA came in at $1 million, compared to a $1.5 million loss a year earlier.

The strongest momentum is clearly coming from China. Revenue in the region surged 88% to $34.9 million, driven by growing demand tied to generative AI projects. The division exited the quarter with an annualised revenue run rate above $144 million.

Outside China, however, conditions remain challenging. The Appen Global segment saw revenue tumble 37% and posted an EBITDA loss of $3.1 million, reflecting the uneven nature of project-based work.

Even so, after the share price collapsed almost 90% over the past five years, expectations are now extremely low.

That creates an interesting setup. If demand for high-quality AI training data continues recovering or if Appen secures new strategic partnerships, even modest operational improvements could spark a sharp market re-rating.

The post These under-the-radar ASX AI shares are starting to turn heads appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 5.5% to $1.16. This artificial intelligence (AI) data services company's shares have been under pressure in recent sessions following the release of its quarterly update. Although Appen posted a 9% increase in revenue to $54.8 million, it is still barely profitable at an EBITDA level. In addition, the performance of its Appen Global business may have spooked investors. It reported a 37% decline in revenue to $19.9 million. Appen's shares are now down 27% since this time last week.

Gentrack Group Ltd (ASX: GTK)

The Gentrack share price is down 34% to $3.20. This has been driven by the release of a trading update from the utilities software company. Gentrack advised that FY 2026 revenue is expected to be between NZ$229 million and NZ$238 million. This is lower than its previous guidance and compares to NZ$230.2 million in FY 2025. However, recurring revenues in FY 2026 are expected to grow by more than 10% to around NZ$174 million. And due to management prioritising growth over short term earnings, it expects full year EBITDA to be between NZ$13.5 million and NZ$20 million. This is sharply lower than FY 2025's EBITDA of NZ$27.8 million.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 7.5% to $9.56. This morning, the fund manager announced sweeping changes to its global fund. This includes management fees being cut from 1.35% to 0.89% per annum and performance fees being removed. In addition, management of the Magellan Global Fund and Magellan Global Fund Hedged will change to Vinva Investment Management. The company's CEO, Sophia Rahmani, said: "Today's announcement reflects our commitment to putting clients first and our insight into client needs today and in the future. We have carefully considered this decision and are prioritising client outcomes whilst at the same time positioning Magellan for long-term growth, with an attractive core global equities offering."

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is down 4.5% to $6.84. This has been driven by news that Regis Resources has agreed to merge with Vault Minerals Ltd (ASX: VAU). The agreement will see Regis Resources acquire Vault Minerals via a scheme of arrangement for 0.6947 Regis shares for each Vault share held. The Vault Minerals board is unanimously recommending the scheme. This is in the absence of a superior proposal and subject to an independent expert's endorsement.

The post Why Appen, Gentrack, Magellan, and Regis Resources shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are tumbling:

Appen Ltd (ASX: APX)

The Appen share price is down 27% to $1.13. Investors have been selling this artificial intelligence (AI) data services company's shares following the release of its quarterly update. Although the company posted a 9% increase in revenue to $54.8 million, it is still barely profitable at an EBITDA level. In addition, the performance of its Appen Global business may have spooked investors. It reported a 37% decline in revenue to $19.9 million.

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is down a further 7% to $5.26. Investors have been selling this gold miner's shares this week following the release of its quarterly update. Catalyst reported gold production of 26,127 ounces with an all-in sustaining cost (AISC) of A$2,901 per ounce. And while the company has reaffirmed its production guidance of 100,000 ounces to 110,000 ounces, it has lifted its cost guidance. It now expects its FY 2026 AISC to come in at A$2,750 per ounce to A$2,950 per ounce. This compares to its previous guidance range of A$2,200 per ounce to A$2,650 per ounce.

South32 Ltd (ASX: S32)

The South32 share price is down 7% to $3.96. This follows the release of an update on the first development of its Hermosa project in Arizona, United States. Management revealed that it has increased development costs by 50%. It said: "Our expected growth capital expenditure for Taylor has been updated to ~US$3,300M. This includes scope changes with the addition of decline access, revised shaft construction costs, materially higher inflation, industry-wide increases in key input costs such as steel, piping, concrete and electrical, and United States tariffs."

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down almost 7% to $34.75. Investors have been selling the supermarket giant's shares following the release of its third-quarter sales update. Woolworths reported a 4.5% lift in group sales to $18.1 billion, led by a 5.9% increase in Australian Food sales and a 20.2% jump in ecommerce sales. However, CEO Amanda Bardwell revealed that Australian Food earnings are no longer expected to be as strong as previously thought. She said: "Reported F26 Australian Food EBIT growth is still expected to be in the mid to high single digit range but no longer at the upper end of the range."

The post Why Appen, Catalyst Metals, South32, and Woolworths shares are sinking today appeared first on The Motley Fool Australia.

At the time of writing, the Appen share price is down 28.06% to $1.115.

That is a brutal drop in a single session, especially when you consider the stock is still up around 40% in 2026.

Here's what spooked investors.

Early signs of growth are starting to show

Looking at the numbers, there are some encouraging signs starting to come through.

Appen reported revenue of $54.8 million for the March quarter, which is up 9% on the same period last year. That follows a long run of declines and is an early sign things may be stabilising.

Profitability also moved in the right direction. The company posted underlying EBITDA of $1 million, compared to a $1.5 million loss a year ago, showing some early improvement as activity picks up.

That said, margins are still under a bit of pressure. Gross margin slipped to 36.5%, down from 37.4% last year, which means cost pressure has not eased yet.

China is doing the heavy lifting

When you dig a little deeper, there's a clear split between the regions, and it explains a lot.

Appen's China business is already its largest and is clearly where the momentum is right now.

Revenue there jumped 88% to $34.9 million, driven by demand tied to generative AI projects. The business also exited the quarter with an annualised run rate above $144 million.

Earnings followed the same trend, with China delivering $5.2 million in EBITDA for the quarter. That's a solid improvement and gives a better sense of how the business looks when demand is there.

But outside the Asian giant, things are still uneven.

The Appen Global segment saw revenue fall 37% to $19.9 million, reflecting the stop-start nature of project work. It also posted an EBITDA loss of $3.1 million, which weighed on the overall result.

No changes to outlook disappoints the market

Another piece that likely didn't help is the outlook.

Appen kept its FY26 guidance unchanged, with revenue expected to land between $270 million and $300 million. Underlying EBITDA margins are expected to sit between -5% and -10%.

There were no upgrades to reflect the stronger China performance, which may have caught some investors off guard given the recent run in the share price.

Cash flow pulls back from last quarter

On the balance sheet side, Appen finished the quarter with $59 million in cash, down slightly from $59.8 million at the end of December.

Operating cash flow also came in lower at $3.8 million, compared to $14.7 million in the prior quarter, largely reflecting typical seasonal patterns.

Foolish takeaway

There are some better numbers in here, but I am not convinced the turnaround is locked in yet.

Right now, the China business is doing most of the work, and that leaves the overall result feeling a bit one-sided.

Until the global segment starts to stabilise, it is hard to get too confident in the recovery.

I would be watching this from the sidelines for now.

The post Why Appen shares just crashed 28% despite a return to growth appeared first on The Motley Fool Australia.

The ASX tech rally has been anything but broad. While WiseTech Global Ltd (ASX: WTC) shares and others like Xero Ltd (ASX: XRO) have surged on the back of the AI and SaaS boom, a second wave of opportunities may be quietly forming.

Here are three ASX AI shares that stand out.

Macquarie Technology Group Ltd (ASX: MAQ)

First up is Macquarie Technology Group. This ASX AI share is emerging as one of the clearest "picks and shovels" plays on artificial intelligence. As demand for AI accelerates, so too does the need for data centres, cloud infrastructure, and secure sovereign hosting. These are all areas where Macquarie Technology is investing heavily.

Unlike many speculative AI shares, this is a business with real earnings and tangible demand drivers. As new capacity comes online and utilisation rates increase, earnings could scale quickly.

If that happens, the market may start valuing it more like established data centre leader NextDC Ltd (ASX: NXT) — and that could mean significant upside.

Objective Corporation Ltd (ASX: OCL)

Next ASX AI share is Objective Corporation. This is a classic under-the-radar SaaS compounder, like WiseTech shares. Objective provides document management and compliance software, primarily to government and regulated industries — making its customer base incredibly sticky.

While it doesn't grab headlines, it has all the hallmarks of a long-term winner: recurring revenue, high margins, and disciplined growth. Importantly, the rise of AI is likely to enhance its offering, particularly in automating workflows and extracting insights from large volumes of documents.

Because this AI share flies under the radar, Objective hasn't enjoyed the same valuation expansion as some of its peers. But if it continues to execute, investors may start to re-rate the stock accordingly.

Appen Ltd (ASX: APX)

Finally, there's Appen. This is the most speculative of the three ASX AI shares, but also the one with the highest potential upside. Appen provides training data used in artificial intelligence models, placing it right in the middle of the AI ecosystem.

After a sharp decline in recent years, expectations are now extremely low. That creates an interesting setup. If demand for high-quality training data rebounds or the company secures new partnerships, even modest improvements in performance could trigger a sharp re-rating.

Of course, the risks remain elevated, particularly as the AI landscape evolves. But for investors with a higher risk tolerance, Appen could offer significant leverage to any recovery in sentiment.

Foolish Takeaway

The bottom line is that the ASX AI rally may still have further to run, but the biggest gains might not come from the likes of WiseTech and Xero that have already surged.

Instead, it could be these under-the-radar ASX AI shares, operating just beneath the surface, that deliver the next wave of standout returns.

The post 3 under-the-radar ASX AI shares that could be the next WiseTech appeared first on The Motley Fool Australia.

Technology was the strongest of the 11 ASX 200 market sectors following a commanding lead from Wall Street.

The NASDAQ Composite Index (NASDAQ: .IXIC) has been on a tear in April and hit a new record high last week.

As of Friday's market close (Australian time), the NASDAQ had recorded 12 consecutive days of gains — its best run since 2009.

ASX 200 tech shares have followed suit, but not in a straight line. The sector has lifted 18.47% since the rebound began on 31 March.

It appears investors may have overcome their fears about artificial intelligence (AI).

Investors have fretted over large AI spending and the potential for AI tools like Claude to wipe out software-as-a-service (SaaS) providers.

These fears drove a near halving in the value of the S&P/ASX 200 Information Technology Index (ASX: XIJ) in just seven months.

You read that right — the tech index experienced an extraordinary 48% sell-off between 29 August and 30 March.

No other sector recorded significant gains last week amid the ongoing war in Iran and a major fire at one of Australia's two oil refineries.

Only five ASX 200 sectors finished the week in the green.

Let's recap.

ASX 200 tech shares led the market last week

The ASX 200's largest tech company, WiseTech Global Ltd (ASX: WTC), skyrocketed 22.72% to finish the week at $46.18 per share.

The Xero Ltd (ASX: XRO) share price leapt 14.72% to $81.98, while TechnologyOne Ltd (ASX: TNE) jumped 11.34% to $30.83.

NextDC Limited (ASX: NXT) shares rose 10.14% to $14.12 and Life360 Inc (ASX: 360) increased 9.6% to $21.35.

The Megaport Ltd (ASX: MP1) share price screamed 26.53% to $8.49.

Hansen Technologies Ltd (ASX: HSN) shares soared 9.37% to $5.02.

ASX 200 hotel booking platform provider, Siteminder Ltd (ASX: SDR), ripped 13.27% to $3.33 per share.

Nuix Ltd (ASX: NXL) shares stormed 10.96% higher to $1.26 apiece, while Appen Ltd (ASX: APX) rose 12.77% to $1.59.

The Weebit Nano Ltd (ASX: WBT) share price lifted 7.41% to $4.06.

Objective Corporation Ltd (ASX: OCL) shares lifted 6.97% to $11.82.

The Dicker Data Ltd (ASX: DDR) share price ascended 4.19% to $8.95.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

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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).

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.

The post Up 109% since November, are Appen shares still a buy today? appeared first on The Motley Fool Australia.

Shares in the All Ordinaries Index (ASX: XAO) tech stock, which provides data solutions for AI applications, closed yesterday trading for $1.325. In late morning trade on Wednesday, shares are changing hands for $1.51 apiece, up 14%.

For some context, the All Ords is up 0.9% at this same time.

This strong outperformance follows the release of Appen's full calendar year 2025 results.

Here's what's got ASX investors reaching for their buy buttons today.

(*Note, all figures below in US dollars.)

Appen share price leaps on earnings growth

For the 12 months to 31 December, the ASX tech stock reported operating revenue of $230.8 million, up 4.5% from 2024. Management said the ongoing turnaround within Appen Global was supported by strong growth from Appen China.

While Appen Global revenue of $127.9 million was down 21% year on year, Appen China revenue of $102.9 million was up 75%, driven by new and expanding large language model (LLM) related projects.

The company credited a greater mix of generative AI projects for the 1.00% increase in gross margin, which came to 40.3% in 2025.

And the Appen share price looks to be getting a lift with the company reporting a 251% year-on-year increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), before FX, to $12.2 million. That reflects a 5.3% EBITDA margin.

On the bottom line, management noted that underlying net profit after tax (NPAT) improvement "was minimal despite the EBITDA improvement due to an increase in non-cash amortisation".

Appen reported a net loss after tax of $10.3 million, compared to a $10.5 million loss reported in 2024.

As at 31 December, Appen had a cash balance of $59.8 million, down 33% from last year.

What did management say?

Commenting on the full-year results boosting the Appen share price today, CEO Ryan Kolln said, "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."

Kolln added:

Q4 in particular saw a strong finish to the year for both our China and Global businesses. Appen China achieved a meaningful milestone exceeding $100 million in revenue for the full year.

What's ahead for the Appen share price?

Looking to what's ahead for the ASX All Ords tech stock, Kolln said:

With the progress we continue to make, we are confident that Appen is well positioned to capture growth at a global scale as AI adoption deepens across consumer, enterprise and emerging applications. We have a strong balance sheet and maintain our focus on revenue growth and ongoing underlying EBITDA profitability.

Appen provided full-year 2026 revenue guidance in the range of $270 million to $300 million. The company expects to achieve an underlying EBITDA (before FX) margin of around 5% to 10%.

With today's big intraday lift factored in, the Appen share price is now up 75.6% in 2026.

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The third week of the earnings season saw some sectors soar. ASX 200 tech shares rebounded while strong results and higher oil prices pushed the index to a record high on Thursday. 

New data from CommSec revealed the Australian shares that were most traded by its clients last week, and some major players have made the list.

CommSec's 5 most-traded ASX shares last week

Zip Co Ltd (ASX: ZIP) shares dominated investor attention last week after they crashed following the company's half-year FY26 results announcement. 

At the close of the ASX on Thursday afternoon, Zip shares had dropped 33.87% to $1.865 a piece. The share price has continued tumbling this week too. At the time of writing the shares have fallen 41.13% since its results announcement less than one week ago.

The price crash ignited investor interest though. Zip shares were the most traded among Commsec clients last week, and by a significant margin too. The data shows 76% of activity was from buyers who were, mostly likely, taking advantage of the low trading price.

CSL Ltd (ASX: CSL) were also among the favorite ASX shares last week. The stock was the second-most traded among Commsec clients, with 66% from buying activity. 

The biotech stock had a subdued week last week after it crashed 15% following its half-year results and shock CEO exit earlier this month. At the time of writing the shares are down 13.88% for the year-to-date.

BHP Group Ltd (ASX: BHP) shares were the third most-traded among Commsec investors, although most of the activity (55%) was investors selling up their stake in the mining giant.

The miner's share price jumped nearly 6% throughout the course of last week. The gains have continued through to this morning too. BHP shares are now up 20.43% for the year-to-date. This implies the selling activity is likely investors taking strong recent gains off the table.

WiseTech Global Ltd (ASX: WTC) shares were the third most traded last week. Most activity (68%) was from buyers after the shares dropped another 2% throughout the week, even despite a broader tech sector uplift. WiseTech shares are now down 35.62% at the time of writing.

Commonwealth Bank of Australia (ASX: CBA) shares were the fifth most-traded, but most of the activity (76%) was investors selling up their stock. This is most likely investors taking profits after the shares jumped 10% following the bank's surprisingly strong half-year results announcement earlier this month.

What other ASX shares were investors interested in?

There was also a flurry of interest in buying Electro Optic Systems Holdings Ltd (ASX: EOS), Droneshield Ltd (ASX: DRO), Appen Ltd (ASX: APX) and Telix Pharmaceuticals Ltd (ASX: TLX) shares last week. 

There was also a lot of selling activity around Woodside Energy Group Ltd (ASX: WDS) shares throughout the week. 

The post Zip, CSL and BHP among CommSec's most-traded ASX shares appeared first on The Motley Fool Australia.

The index was largely affected by selling pressure among investors offloading their gold mining stocks. This was after the metal price slumped from its peak.

New data from CommSec reveals the Australian shares that were most traded by its clients last week, highlighting investor sentiment and market momentum.

Most traded Australian shares in the last week of January

CommSec's data shows that Droneshield Ltd (ASX: DRO) continues to be a firm favourite among its clients. The drone operator's shares were the most traded Australian stock between the 26th and 30th of January.

Droneshield shares have gathered a lot of attention recently. The company is making great progress, and its share price continues to recover following the price crash late last year.

The shares are now just 43.4% below their all-time high of $6.60 seen in October. Over the course of last week, 58% of Droneshield activity was investors buying, but 42% was investors selling up and taking some recent gains.

At the time of writing, Droneshield shares are up 8.41% for the day to $3.74 a piece. For the year to date, the shares are up 12.16%. Analysts widely rate the shares as a buy following the company's strong quarterly update last week. 

Next on CommSec's most traded Australian shares list are Global X Metal Securities Australia Ltd (ASX: ETPMAG) and BHP Group Ltd (ASX: BHP). 

The data shows that 69% of trades in the silver exchange-traded fund ETPMAG were purchases, after surging silver prices were thrust into the spotlight last week. Meanwhile, 65% of trades in the mining giant BHP were sales after the miner took the top spot as the largest stock on the ASX.

What else were investors interested in last week?

CommSec clients were also interested in Global X Physical Gold Structured (ASX: GOLD), 4DMedical Ltd (ASX: 4DX), PLS Group Ltd (ASX: PLS), WiseTech Global Ltd (ASX: WTC), Lynas Rare Earths Ltd (ASX: LYC), and Perth Mint Gold Structured Product (ASX: PMGOLD). Most activity for each of these shares was buying.

Appen Ltd (ASX: APX) shares also made the top 10 most traded shares list during the week, but the majority of activity (41%) was investor selling.

The post These were the 10 most traded Australian shares last week appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Appen Ltd (ASX: APX)

The Appen share price is up 12% to $1.88. Investors have been buying this artificial intelligence data services company's shares since the release of a strong quarterly update last week. Appen reported revenue of $73.4 million for the three months. This was a 10% lift on the prior corresponding period and a 33% increase on the third quarter of FY 2025. Commenting on the quarter, Appen's CEO, Ryan Kolln, said: "Q4 was a strong finish to the year for both our China and Global businesses. Appen China exited the quarter with an annualised revenue run-rate growing to over $135 million – a pleasing result, providing strong momentum heading into FY26."

Imricor Medical Systems Inc (ASX: IMR)

The Imricor Medical Systems share price is up 2% to $1.99. This morning, this medical device company revealed that Oklahoma Heart Institute (OHI) has joined the VISABL-AFL clinical trial. It notes that this will support the U.S. FDA approval process for Imricor's ablation products. OHI is now the fourth U.S. site to join the trial. Imricor's Chair and CEO, Steve Wedan, added: "Oklahoma Heart Institute represents a highly sophisticated cardiology-led model of care, with the clinical vision and infrastructure already in place to support advanced MRI-guided procedures. The fact that cardiology owns and operates their MRI system creates a streamlined environment for innovation, reducing organisational complexity while enabling physicians to focus on delivering the best possible outcomes for patients."

Qoria Ltd (ASX: QOR)

The Qoria share price is up 19% to 40 cents. This follows news that the cyber safety company is merging with its peer, Aura. It is a US-based provider of intelligent online safety solutions to individuals and families. Aura will acquire all Qoria shares through an all-scrip deal at a price equivalent to 72 cents per share. Qoria's CEO, Tim Levy, said: "The internet was created to connect us, yet online safety has eroded, making trust paramount for parents, guardians and organisations, in general, for the protection of our activities online. The combination of Aura and Qoria pioneers a lifelong digital safety ecosystem; a new category that meets the urgent need for technology, education, and trust to protect people – confidently and safely, throughout their entire lives."

Xero Ltd (ASX: XRO)

The Xero share price is up 3% to $96.46. Investors have been buying this cloud accounting platform provider's shares following the release of an update on its AI and US plans. Xero also reiterated its FY 2026 guidance. It advised that total operating expenses as a percentage of revenue is expected to be around 70.5%, including the Melio business. In addition, management reaffirmed its aim of more than doubling its FY 2025 group revenue in FY 2028.

The post Why Appen, Imricor, Qoria, and Xero shares are storming higher today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 9% to $1.68. This may have been driven by profit-taking from investors after the artificial intelligence data services company's shares rocketed last week. Investors were buying Appen's shares following the release of a strong quarterly update. It reported revenue of $73.4 million. This was a 10% lift on the prior corresponding period and a 33% increase on the third quarter of FY 2025. Appen's CEO, Ryan Kolln, said: "Q4 was a strong finish to the year for both our China and Global businesses. Appen China exited the quarter with an annualised revenue run-rate growing to over $135 million – a pleasing result, providing strong momentum heading into FY26."

Brightstar Resources Ltd (ASX: BTR)

The Brightstar Resources share price is down 23% to 48.2 cents. This has been driven by the gold explorer raising funds through a major capital raising. Brightstar has received binding commitments from tier one institutional investors to raise $175 million at a discount of 50 cents per new share. Brightstar's managing director, Alex Rovira, commented: "The near-term development of our Goldfields Hub, as shown in our DFS 2.0, enables Brightstar to underpin its position as an emerging Western Australian gold producer with a significant growth profile that will generate outstanding financial metrics and unlock significant value for our shareholders."

Graincorp Ltd (ASX: GNC)

The Graincorp share price is down 16% to $6.07. This has been driven by the release of guidance from the grain exporter this morning. Graincorp is now forecasting underlying EBITDA of $200 million to $240 million and underlying net profit after tax between $20 million and $50 million. These are both down materially on the prior corresponding period. The company's CEO, Robert Spurway, said: "Record global production has created an oversupply of grain, outpacing demand growth and placing downward pressure on commodity prices for the whole market. Despite strong ECA production volumes, with ABARES estimating a 2025-26 ECA winter crop of 31.2 million tonnes (mmt), the current abundance of global supply and low grain prices have reduced incentives for growers to deliver grain to market. As a result, GrainCorp is experiencing lower margins on grain handled in FY26."

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 7.5% to $26.78. Investors have been selling Northern Star's shares following a huge decline in the gold price on Friday night. It isn't just Northern Star that is tumbling today. Most ASX gold shares are falling heavily along with it this afternoon. This has seen the S&P/ASX All Ordinaries Gold index fall 7.1% so far today.

The post Why Appen, Brightstar, Graincorp, and Northern Star shares are sinking today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up 3% to $3.53. This follows news that the respiratory imaging technology has expanded its partnership with University of Chicago Medicine to include commercial deployment of CT:VQ. 4DMedical's founder CEO, Andreas Fouras, said: "University of Chicago Medicine is one of the nation's most respected AMCs and a pioneer in medical innovation. Their expansion of our partnership to include CT:VQ represents powerful validation of both the clinical value our technology delivers and the strength of our commercialisation approach."

Appen Ltd (ASX: APX)

The Appen share price is up a further 24% to $1.75. This artificial intelligence data services company's shares have been on fire this week following the release of a strong quarterly update. Appen reported revenue of $73.4 million. This was a 10% lift on the prior corresponding period and a 33% increase on the third quarter of FY 2025. Appen's CEO, Ryan Kolln, said: "Q4 was a strong finish to the year for both our China and Global businesses. Appen China exited the quarter with an annualised revenue run-rate growing to over $135 million – a pleasing result, providing strong momentum heading into FY26."

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine Entertainment share price is up 4.5% to $1.14. This morning, the media company announced a major strategic shake-up. This includes acquiring digital outdoor media platform QMS Media for $850 million. In addition, it is offloading its radio assets and transitioning its regional TV station NBN to affiliate status. Nine's CEO, Matt Stanton, said: "Today's announcements mark a critical milestone in our Nine2028 transformation. These transactions will create a more efficient, higher-growth, and digitally powered Nine Group for our consumers, advertisers, shareholders and people."

ResMed Inc. (ASX: RMD)

The ResMed share price is up 3.5% to $37.66. Investors have been buying this sleep disorder treatment company's shares following the release of another strong quarterly update. ResMed reported an 11% increase in revenue US$1.4 billion thanks to increased demand for its portfolio of sleep devices, masks, and accessories. And thanks to further margin expansion, ResMed posted an 18% increase in income from operations. ResMed's chairman and CEO, Mick Farrell, said: "Our second quarter results demonstrate the strength and resilience of our global business as we continue advancing our mission to help people sleep better, breathe better, and live longer and healthier lives in the comfort of their own home."

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