Appen Ltd Share Price Climbs 27% on Profit Upgrade
Appen Ltd [ASX:APX] traded up as much as 27% today, to a high of $3.28 per share.
What happened to the Appen Ltd Share Price?
Appen is a high-tech company. It uses machine learning and artificial intelligence to translate images, text, videos and speech into 180 different languages.
And this morning, Appen told investors that earnings for full FY17 will be in the range of 40-50% higher than FY16 figures.
The increase in earnings stems from the accelerating demand for Appen’s high quality data for machine learning-based products.
Should I buy APX shares?
Buy in now? Or are you a bit too late?
It should come as no surprise that the stock will come down in the next few days. That’s just how it works. On a positive note, investors tend to overestimate how good the news is. And vice versa with bad news.
So while it might be tempting to jump into this high-tech revolutionary company now, I suggest you wait until the price drops. It might turn out that profits stagnate in FY18 and cause a selloff in the stock.
This is when I would look to get into Appen or any other growth stock.
Junior Analyst, Money Morning
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