We looked at Appen (APX) in yesterday’s “The Match Out Report” after the digital marketing company broke below $3 for the first time in 5-years, after plunging almost 12% after yet another downgrade. Appen has a very select group of large customers who are cutting back on how they use their services, they have little control over this and it is a clear sign that what APX offers is peripheral rather than core. As Warren Buffet liked to say, it’s only when the tide goes out do we see who is swimming naked!
When we compare the trends in Appen with one of our holdings in the International Portfolio – Snowflake (SNOW US), they are seeing increased demand for their services despite tougher economic conditions, which is the trend we want to be seeing – unfortunately not the case with APX.
- We have no interest in companies that continue to downgrade.
The demise of APX looks pretty similar to MFG, they’re unlabelled charts could be overlapped and it would be hard to pick which is which!
MM has no interest in APX
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