APX Charts, page-1441

Nice to see Appen form a hammer candlestick on the 5th of March, likely marking the bottom.

The Hammer is a bullish reversal pattern that forms after a decline. In addition to a potential trend reversal, hammers can mark bottoms or support levels. After a decline, hammers signal a bullish revival.

It is likely but not guaranteed that this is the bottom. If the MACD crosses over, I think we have further evidence that this is the bottom, but we will need to wait for a bullish MACD cross to be sure.

If that happens, I would expect a rebound back to the previous support at ~$22 levels.

By the end of this year, with Chinese growth coming through, maturing big 5 customer projects and a more bullish outlook, I think $30+ levels will be back on the agenda. Even $30 is merely a $3.6 billion AUD market cap, that's circa 5x CY21 revenue and ~28x CY21 EV/EBITDA.

Scale AI is valued at $3.5 billion USD and yet is less than 20% the size of APX; albeit focused mostly on speech and image versus APX on relevance data.

High growth tech stocks can/might be hurt from rising bond yields and the growth to value rotation, but APX is in a unique place here because it has fallen to levels that are now value territory (currently ~16x CY21 EV/EBITDA).