There's Reason For Concern Over Appen Limited's (ASX:APX) Massive 30% Price Jump

Simply Wall St.

Jan 09

Appen Limited (ASX:APX) shares have had a really impressive month, gaining 30% after a shaky period beforehand. Still, the 30-day jump doesn't change the fact that longer term shareholders have ...

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Still, the 30-day jump doesn't change the fact that longer term shareholders have ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/software/asx-apx/appen-shares/news/theres-reason-for-concern-over-appen-limiteds-asxapx-massive\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>There's Reason For Concern Over Appen Limited's (ASX:APX) Massive 30% Price Jump</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThere's Reason For Concern Over Appen Limited's (ASX:APX) Massive 30% Price Jump\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-09 04:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/software/asx-apx/appen-shares/news/theres-reason-for-concern-over-appen-limiteds-asxapx-massive><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Appen Limited (ASX:APX) shares have had a really impressive month, gaining 30% after a shaky period beforehand.    Still, the 30-day jump doesn't change the fact that longer term shareholders have ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/software/asx-apx/appen-shares/news/theres-reason-for-concern-over-appen-limiteds-asxapx-massive\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"APX.AU","symbol_name":"APPEN LTD","start_time":0,"source_url":"https://simplywall.st/stocks/au/software/asx-apx/appen-shares/news/theres-reason-for-concern-over-appen-limiteds-asxapx-massive","article_id":"2602348939","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8031000-choice2-main-header/1585186598236"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/software/asx-apx/appen-shares/news/theres-reason-for-concern-over-appen-limiteds-asxapx-massive","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602348939","pubTimestamp":1767904559,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Appen Limited ( ASX:APX ) shares have had a really impressive month, gaining 30% after a shaky period beforehand...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"APX.AU":"APPEN LTD","BK7503":"科技股","BK7061":"信息科技咨询与其它服务"},"translate_title":"澳鹏有限公司(ASX：APX)股价大幅上涨30%，值得担忧","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"APX.AU":1.5},"content_text":"Appen Limited (ASX:APX) shares have had a really impressive month, gaining 30% after a shaky period beforehand.    Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 67% share price drop in the last twelve months.    Even after such a large jump in price, there still wouldn't be many who think Appen's price-to-sales (or \"P/S\") ratio of 0.7x is worth a mention when the median P/S in Australia's IT industry is similar at about 1.1x.  Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.     This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.  View our latest analysis for Appen ASX:APX Price to Sales Ratio vs Industry January 8th 2026Advertisement How Appen Has Been Performing  While the industry has experienced revenue growth lately, Appen's revenue has gone into reverse gear, which is not great.   Perhaps the market is expecting its poor revenue performance to improve, keeping the P/S from dropping.  You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.     Keen to find out how analysts think Appen's future stacks up against the industry? In that case, our free report is a great place to start.  What Are Revenue Growth Metrics Telling Us About The P/S?   The only time you'd be comfortable seeing a P/S like Appen's is when the company's growth is tracking the industry closely.   Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 9.4%.   As a result, revenue from three years ago have also fallen 48% overall.  Therefore, it's fair to say the revenue growth recently has been undesirable for the company.     Shifting to the future, estimates from the four analysts covering the company suggest revenue should grow by 10% per year over the next three years.  With the industry predicted to deliver 33% growth each year, the company is positioned for a weaker revenue result.  With this information, we find it interesting that Appen is trading at a fairly similar P/S compared to the industry.  Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now.  Maintaining these prices will be difficult to achieve as this level of revenue growth is likely to weigh down the shares eventually.    The Key Takeaway  Its shares have lifted substantially and now Appen's P/S is back within range of the industry median.      We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.  When you consider that Appen's revenue growth estimates are fairly muted compared to the broader industry, it's easy to see why we consider it unexpected to be trading at its current P/S ratio.  At present, we aren't confident in the P/S as the predicted future revenues aren't likely to support a more positive sentiment for long.  This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.      A lot of potential risks can sit within a company's balance sheet.  Take a look at our free balance sheet analysis for Appen with six simple checks on some of these key factors.   It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E). New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}