I've been searching online for financial information about Scale AI and found several websites providing estimated data. However, these sources claim that Appen generates $4.3 billion in revenue, which seems inaccurate to me. Based on publicly available information, Scale AI recently raised $1 billion at a valuation of $14 billion, with a year-over-year growth rate of 200%. Given that they are still seeking financing, it's likely they're operating at a loss, which is typical for high-growth tech companies. Assuming a price-to-sales ratio of 30 times, the estimated revenue for Scale AI would be around $460 million. In comparison, Appen's revenue was $530 million in 2019, and it was profitable with a market value of about $4 billion. Thus, Scale AI's valuation appears overvalued. However, as you mentioned, investors in the US tend to be more optimistic than those in Australia.
Personally, I don't foresee Scale AI acquiring Appen due to their significant business overlap. From a technological standpoint, having competitors in the market fosters innovation, benefiting both Scale AI and us.
Considering that Appen's market value is only $100 million compared to Scale AI's $14 billion, Appen seems significantly undervalued. By any metric, Appen's current valuation, with $200 million in revenue, a 30% gross margin, $36.4 million in cash on hand, and no debt, appears exceptionally low. The upcoming half-year report on 30th August is a critical time for Appen. If the company breaks even and maintains a market value of $100 million, it could attract acquisition interest from US companies.
I believe conservative investors will likely wait for the half-year report before entering the market, so significant stock price movements are not expected in the near term. Will it drop to the 30s as some suggest? I am unsure, but I am personally buying now as I believe it is worth taking the risk.
Nonetheless, these are just my personal thoughts and not advice for anyone. Please conduct your own research (DYOR).
- Forums
- ASX - By Stock
- APX
- The Journey of Appen’s Stock Price and Business Operations Through Recent Years
The Journey of Appen’s Stock Price and Business Operations Through Recent Years, page-152
-
-
- There are more pages in this discussion • 295 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add APX (ASX) to my watchlist
|
|||||
Last
$1.33 |
Change
-0.010(0.75%) |
Mkt cap ! $296.7M |
Open | High | Low | Value | Volume |
$1.35 | $1.39 | $1.30 | $8.548M | 6.360M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 57303 | $1.33 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.33 | 5220 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 25864 | 1.330 |
7 | 83515 | 1.325 |
5 | 35175 | 1.320 |
8 | 174665 | 1.315 |
9 | 84016 | 1.310 |
Price($) | Vol. | No. |
---|---|---|
1.335 | 9129 | 5 |
1.340 | 21306 | 5 |
1.345 | 19010 | 4 |
1.350 | 34640 | 3 |
1.355 | 52344 | 4 |
Last trade - 13.54pm 11/09/2024 (20 minute delay) ? |
Featured News
APX (ASX) Chart |