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Why has the share price of Appen Limited (APX.AX) dropped to a 5-year low?
On Monday, the share price of APX fell further, to the point that it has reached a 5-year record low.
Furthermore, reaching that level indicated that its shares had lost 36% of their value since this time last month. The APX share price soared before plummeting when the business disclosed reportedly poor first-half profits. Notably, the technology firm discontinued its interim dividend when its after-tax profit fell into the red.
Let us begin with today's downturn. The APX share price fell today as the NASDAQ index of technology stocks fell on Friday night.
This was prompted by statements by the U.S. Federal Reserve, which indicated that rates would be aggressively raised to combat inflation. While the market has been expecting rates to rise, the general consensus now is that rates will remain higher for a longer period of time than previously anticipated.
Not only did the APX's share price decline today. The S&P ASX All Technology index fell nearly 4%.
The recent announcement of APX's half-year results for fiscal year 2022 has also weighed on the company's stock.
APX reported a loss after tax of $9.4 million for the fiscal year ended 30 June. This was a decrease from the previous similar period's earnings of US$6.7 million.
In reaction to the outcome, Macquarie Group Limited (MQG.AX) maintained its underperform rating and reduced its price objective to $3.30. Ord Minnett Cash (737.AX), on the other hand, reduced APX's shares to a sell rating and lowered its price target to $3.00.
Unfortunately, according to these broker notes, despite its recent decline, the APX share price may not have reached a bottom yet.
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