Concierge gives you timely BUY and SELL alerts on ASX-listed stocks
Today Appen (ASX:APX) reported its 1HY23 results and once again investors received it poorly.
What are the Best Tech stocks to invest in right now?
Check our buy/sell stock tips
Who is Appen (ASX:APX)?
Appen sources and sells machine learning data to train AI algorithms. Historically, its client base was concentrated around a handful of big tech companies and predominantly for advertising purposes. But Appen has been diversifying its customer base into new clients and markets although investors fear these cash flows won’t be as reliable and as strong as before. This has been showing in its results and in repeated failure to meet its own guidance, let alone consensus estimates.
In FY22, which is the calendar year, its revenue fell by 25% and its bottom line swung from a $28m profit to a $239m loss.
In 2023, the stock has surpassed $3 on a couple of occasions over hype that it can capitalise on the rise of ChatGPT and hope that things can get better because of new management and a cost reduction program. But so far it is not showing in the bottom line.
In 1HY23, the company’s revenue declined 24% to US$138.9m, a fall management blamed on challenging external operating and macroeconomic conditions. It posted an underlying loss of US$34.2m and a statutory loss of US$43.3m.
Shares fell more than 30% on Monday to go even further away from its mid-2020 highs.
Was the result that bad?
Considering the hype about AI, and the company’s explicit promise to capitalise on it, it probably is. What made things worse is that after previously promising that the second half would be better, the company expects the second half to be roughly the same. It also promised it would reach ‘underlying cash EBITDA profitability on an annualised, run-rate basis‘.
But it would likely surprise nobody (us included) if it was a further deterioration still.
Stocks Down Under Concierge is here to help you pick winning stocks!
The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector, including Semiconductors!
Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target and stop loss level in order to maximise total returns. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.
Our performance is well ahead of the ASX200 and All Ords.
You can try out Concierge … for FREE.
There’s no credit card needed – the trial expires automatically.
Sherwin Williams (NYSE:SHW) is a 157-year-old paint company from Cleveland, Ohio. This week’s international stock of the week is one…
We thought we’d have a bit of fun with our ASX stocks focus for a change. We’ve watched some companies closer…
If investing in resources stocks (particularly junior explorers) is too risky, another option is investing in metal exchanges. But is…