In major news on Australian stocks, shares of Appen Limited (AU:APX) plummeted following the announcement of an update confirming the withdrawal of the takeover offer by the U.S.-based Innodata, Inc. (NASDAQ:INOD). Innodata withdrew the offer due to a breach of confidentiality. Appen shares saw a decrease of 17.1% in Thursday’s trading session, while Innodata’s shares surged by over 8% yesterday.
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Appen is a prominent provider of data solutions tailored for machine learning and AI applications, primarily serving the technology, government, and automotive sectors.
Appen Share Price Saga
This week has been a volatile one for APX stock. The excitement surrounding the company’s possible takeover caused a surge in its shares on Tuesday. However, the subsequent news of the failed takeover resulted in a significant decline in the stock. Over the last month, APX stock has seen a remarkable gain of 142% in trading.
Before this, Appen shares plummeted over 40% in a single day of trading in January, following the termination of its global inbound services contract by Alphabet’s (NASDAQ:GOOGL) Google.
With the end of the takeover discussions, Appen will refocus its efforts on its turnaround strategy and strive to achieve its targets for the year ahead. Last month, the company released its annual results for 2023, revealing a significant 30% decline in revenues. Additionally, it reported an underlying loss of $52.8 million. The weak performance was mainly attributed to decreased spending by large customers and a slowdown in the technology industry. Nevertheless, Appen is optimistic about attaining profitability in FY24 by expanding its non-global customer base.
What is the Price Forecast for Appen Stock?
According to TipRanks’ consensus, APX stock has garnered a Hold rating based on two Hold recommendations. The Appen share price target is AU$0.53, which is 33.5% lower than the current trading level.
It is important to note here that these ratings were updated in the last month and could potentially change in response to the recent events.
