Appen Ltd (APX)
Hi Team I have another question on Appen. It is up 42% in a month. Do MM have an updated opinion on this company. As your previous comments have not been favourable? thanks Andrew
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Answer
Hi Andrew,
Appen has bounced in recent weeks but its endured an awful 3-months since the AI trainers work volumes fell at the start of the fiscal year. The company’s core services involve collecting, curating, and labelling diverse datasets—such as text, speech, images, video, and sensor data to support AI applications with the issue for APX being the increasing automation of data labelling processes by its clients – the loss of Google as client was the most painful and well documented.
- Perhaps we are being skewed by their prior missteps and consistently flawed guidance which demonstrated a clear lack of visibility and consistency in their operations – companies can change, however, our concern remains that a smaller operative in Australia with a chequered corporate history has a big task competing with big tech.
Ultimately, APX looks ok as an aggressive trade around $1.25, using a stop loss just below $1.
