The Appen (ASX: APX) share price has been struggling this year amid a tough time for ASX tech shares.
Appen shares have fallen 27% since market open on 4 January. Appen shares finished Tuesday's session at $8.14.
Let's take a look at what might be impacting this artificial intelligence (AI) data service company.
Why has the Appen share price fallen?
The Appen share price has been descending since the start of the year, shedding nearly 22% since market close on 1 February.
Appen shares took a major hit in early February amid an earnings release from global tech giant Meta Platforms Inc (NASDAQ: FB). Meta is the parent company of Facebook, Instagram, and WhatsApp.
Meta reported Facebook had experienced weaker advertising demand and revenue. As my Foolish colleague James reported, Facebook uses Appen services to support its advertising operations.
Analysts at RBC Capital Markets also alluded to the impact of Meta's earnings on Appen in a broker note in February.
The broker stated Appen's AI-powered search relevance accounts for more than 80% of domestic revenue, as my colleague Zach reported.
Broader technology sector weakness also may have impacted the Appen share price. Since market open on 4 January, Megaport Ltd (ASX: MP1) shares have dropped nearly 35%, Altium Limited (ASX:ALU) has slipped 29% and Xero Limited (ASX: XRO) is down nearly 33%.
For perspective, the S&P ASX All Technology Index (ASX: XTX) has plunged 24% in the same time frame.
Nasdaq-100 Technology Sector Index (NASDAQ: NDXT) in the United States has also fallen nearly 17% in the year to date. ASX tech shares often follow in the footsteps of their US counterparts. Rising interest rate speculation is among the reasons for the tech share fall.
Appen share price snapshot
The Appen share price has plunged 60% in the past year. In the past month alone, Appen shares have fallen almost 20%.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.
Appen has a market capitalisation of about $1 billion, based on its current share price.
