Appen still does business with Big Tech but not so much in the Digital Advertising - this was their big margin business. This mainly entailed bias judgements in the millions.
Since Covid in 2020 and then inflation interest rate environment. Advertising companies tightened their purse strings where Meta and Google advertising business fell off a cliff for a couple of years.
Appen had to diversify revenue away from digital advertising even though it has done a good job doing that it's not enough to offset digital advertising losses.
The money in start ups that require data to run their A.I is not really there none have floated to raise capital in the markets.
So - fell into a bit of bad luck. The future is rather murky - and will continue to be until revenue finds a bottom.
There will be a time when companies adopt AI and that just hasn't happened yet. Appens fortunes can be closely correlated with Russell 2000 companies that depend on vibrant business conditions...and Russell 2000 has been in a two year bear market.
APX Price at posting:
60.0¢ Sentiment: Hold Disclosure: Held
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