I've been searching online for financial information about Scale...

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).