There is a possibility here that these new projects relating to the metaverse will generate a new leg of growth for Appen. Data labelling is still the number 1 challenge for AI/ML models and will continue to be for at least the next decade in my opinion. That's also the opinion of APX management, Scale AI and plenty of US-based investors who are pilling cash into new data labelling startups. This is a multi-year growth runway.
What would be very special is if a new leg of growth of non-advertising projects (i.e. the metaverse) coincided with the return of existing content relevance and advertising revenue (that was previously lost in the last half). That would be a massive surprise to the market...
Tempted to change my sentiment to a buy, but will maintain a hold for the moment until I see the CY22 outlook, which I suspect will predict a return to growth, possibly a lot more growth than the market expects. I'm certainly not selling at these deflated levels and locking in a loss given that I have the luxury of a multi-year investment horizon and no immediate need for this cash.
The SMA20 has now crossed above the SMA50. The next step in the recovery is for the SMA50 to cross above the SMA200 (a golden cross).
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