Don’t think Facebook really matters to Appen anymore. Appen...

Don’t think Facebook really matters to Appen anymore.

Appen would have pivoted away from them last year and Macquarie probably downgrade forecast based on a word with Facebook?

Anyway a Good article in the AFR today. A small snippet regarding Appen;

Simon Brown is co-portfolio manager of Tribeca’s Australian smaller companies strategy.

Has Appen been oversold?We think so. The risk versus reward on Appen is interesting here, given the fall from a peak share price of $43.50 in August 2020 to around $9.62 today. The sell-off was driven by a sharp deceleration in revenue growth in late 2020 and early 2021, leading to investors slashing the medium term growth outlook while at the same time inflicting a material multiple de-rating. Looking back, this period of weakness corresponds with the period of peak COVID-19 disruption in the US, which may be a coincidence, but Appen certainly would not have been the only business to have been impacted during the period.Management have guided to a much stronger outcome in the second half of 2021, and we will be watching the result with interest. Today, Appen remains a global leader in providing crowd annotated training data and this exposes it to very strong secular tailwinds as AI becomes more prevalent, while you’re only paying a market multiple for it.

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