$4 party!, page-62

Cheers, I agree with some parts of your assessment. However there are a few assumptions that get rehashed repeatedly through this forum that are misleading.

Firstly, Appen’s overall contribution to multinational megatech companies racing toward capitalising on AI, is highly overstated. There a a large network mber of established and emerging training data companies, not to mention the in-house efforts by many of the mega-tech entities.

Secondly, a business’s profits come from efficient and streamlined processes, and frankly Appen’s training data sourcing and contracts are a bit of a dogs breakfast.

Lastly, in order to remain relevant in a rapidly evolving field, it is critical that Appen stay at least a few steps ahead of the game. Instead, Appen is struggling to stay relevant as they fell asleep at the wheel and have been on the backfoot since. I think you’ll find over the coming years, Appen is going to be less and less of a main player in this sphere. It also does not have any real diversification as a company, so a significant risk from a lack of a business ‘moat’.

The moment it requires a capital raise or to take on debt in this high interest period, it is finished as a company, as I believe it will struggle to stay relevant [enough] to improve its cash flow position and hence maintain profitability. A CEO reshuffle in the middle of this highly competetive period further adds to its woes lagging the competition.

Just my two cents in summary.