Appen (APX) shares crash with soft 1st half
1H21 Result: Not much love for the AI business today with the market showing disbelief in managements full year guidance. For the half, APX produced $28m in EBITDA which was ~20% below expectations however they said they are still likely to hit the lower end of existing full year guidance, which implies EBITDA ~$81m, or in other words, the mice are going to be peddling the wheels very hard in the 2H to meet that…seems unlikely to MM. The market has lost faith here in APX guidance and can only really price what’s being delivered, a 20% miss = a 20% hit to shares with not ‘benefit of the doubt’ afforded to management these days. This will be a buy at some point, our job is to now think about where.
MM will look at APX ~$10
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