Why did the Appen share price just hit a 5-year low?

The Appen share price has continued its slide on Monday…

| More on:
A surprised man sits at his desk in his study staring at his computer screen with his hands up.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Appen Ltd (ASX: APX) share price continued its slide on Monday.

At one stage, the artificial intelligence data services company's shares were down over 6% to a five-year low of $3.65.

Furthermore, when its shares hit that level, it meant that they had lost 36% of their value since this time last month.

Why is the Appen share price at a five-year low?

Let's start with today's decline. The Appen share price was sold off today after tech shares crashed lower on Wall Street's NASDAQ index on Friday night.

This was driven by comments out of the US Federal Reserve which indicated that it would aggressively raise rates to fight inflation. And while the market has been expecting rates to rise, the general consensus is now that rates will be higher for longer than previously expected.

It wasn't just the Appen share price falling today. The S&P ASX All Technology index dropped a sizeable 4%.

What else?

Also weighing on Appen's shares has been the recent release of its half year results for FY 2022.

For the 12 months ended 30 June, Appen posted a loss after tax of US$9.4 million. This was down from a profit of US$6.7 million during the prior corresponding period.

In response to the result, the team at Macquarie retained its underperform rating and cut its price target to $3.30. Whereas the team at Ord Minnett downgraded Appen's shares to a sell rating and slashed its price target on them to $3.00.

Unfortunately, based on these broker notes, the Appen share price may not have found a bottom yet despite its recent weakness.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 3 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Technology Shares

Surging earnings and a slumping share price: Should I buy this ASX 200 tech stock today?

With profits and earnings soaring and shares down in 2025, is this ASX 200 tech stock too good to ignore?

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Technology Shares

Guess which ASX tech stock is jumping 10% on strong update

It has been another impressive quarter for this tech star.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
AI Stocks

Should I buy the big dip on NextDC shares?

NextDC shares are down 32% in 2025. Should I buy the big dip on the ASX 200 data centre stock?

Read more »

Man ecstatic after reading good news.
Technology Shares

Guess which ASX 200 tech stock Bell Potter just upgraded after the market selloff

The broker has become bullish on this growth stock. But why?

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

A quality ASX 200 stock to buy now amid the Trump tariff turmoil

A leading expert expects the ASX 200 company will deliver strong earnings growth for many years to come.

Read more »

Woman with a scared look has hands on her face.
Technology Shares

Why is this ASX 200 tech stock sinking 14% on Monday?

Let's see why investors are hitting the sell button this morning.

Read more »

A person holding an animated diagram regarding the tech sector in his hand.
International Stock News

Which Magnificent 7 stock is most impacted by Trump's tariffs?

This big tech company is likely to be hit the hardest.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Technology Shares

Down more than 14% from its peak, is this a rare chance to buy TechnologyOne shares on sale?

I think this market darling is still a little pricey.

Read more »