Should I buy Appen stock in 2025?

P. Laurore
P. Laurore Last updated: 3 May 2025

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Appen
3.7
hellosafe-logoScore

Is Appen stock a buy right now?

Appen Limited (ASX: APX), currently trading at approximately A$0.77 with an average daily volume of 11.17 million shares, stands as one of Australia’s pioneering companies in the AI data services sector. While the stock has faced significant downward pressure in the first half of 2025, particularly following the loss of a major contract with Google, recent quarterly results reveal encouraging signs of operational progress. Excluding Google, revenue grew 12% year-over-year in the latest quarter, coupled with a notable improvement in EBITDA and a robust cash position (US$67.9 million with no significant debt). This resilience underlines the company’s global reach and its growing role in supplying critical data for the booming generative AI and LLM markets. Although short-term technical indicators remain bearish and volatility persists, market sentiment recognises Appen’s capacity for adaptation and its embeddedness in a fast-growing industry. Importantly, more than 27 national and international banks now set a target price of A$1.00 for Appen, reflecting a constructive outlook should the company capitalise on new market opportunities and sector expansion. As AI continues to permeate diverse industries, Appen’s proven expertise and diversified client base position it well for a period of potential recovery and renewed growth.

  • Leading global provider of AI data services with proven 28-year industry track record.
  • Access to over 1 million contractors across 200+ countries ensures rapid scalability.
  • Strong cash reserves of US$67.9 million and no significant debt.
  • Growth in generative AI and LLM-related demand supports future revenue streams.
  • Demonstrated EBITDA improvement and revenue growth outside of Google contract.
  • Short-term profitability remains a challenge amid recent negative earnings.
  • Competitive landscape and loss of major partner create near-term uncertainty.
Table of Contents
  • What is Appen?
  • How much is Appen stock?
  • Our full analysis on Appen </b>stock
  • How to buy Appen stock in Australia?
  • Our 7 tips for buying Appen stock
  • The latest news about Appen
  • FAQ
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Why trust HelloSafe?

At HelloSafe, our expert has been monitoring Appen’s performance for more than three years. Each month, hundreds of thousands of Australians rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are intended for informational purposes only and should not be considered as investment advice. In line with our ethical charter, we have never received, and will never receive, any payment from Appen.

What is Appen?

IndicatorValueAnalysis
🏳️ NationalityAustralianHeadquartered in Chatswood, NSW, Appen is a leading Australian tech company.
💼 MarketASX (Australian Securities Exchange)Listed on the ASX under the ticker APX, accessible to Australian investors.
🏛️ ISIN codeAU000000APX8Unique ISIN for Appen shares, ensuring global tradability and identification.
👤 CEORyan KollnLed by Ryan Kolln, focused on AI growth and streamlining operations post-Google contract loss.
🏢 Market capA$203.47 millionMarket cap is near historical lows, reflecting investor caution and lost major clients.
📈 RevenueUS$235.22 million (FY24), US$50.2m (Q1 FY25)Revenue declined year-on-year; excluding Google, underlying business showed some growth.
💹 EBITDAUS$-1.5 million (Q1 FY25)EBITDA loss narrowed, indicating improvement but continued challenges to reaching profitability.
📊 P/E Ratio (Price/Earnings)N/A (negative earnings)Negative earnings prevent P/E calculation; signifies ongoing profit and turnaround concerns.
Key financial and operational indicators for Appen
🏳️ Nationality
Value
Australian
Analysis
Headquartered in Chatswood, NSW, Appen is a leading Australian tech company.
💼 Market
Value
ASX (Australian Securities Exchange)
Analysis
Listed on the ASX under the ticker APX, accessible to Australian investors.
🏛️ ISIN code
Value
AU000000APX8
Analysis
Unique ISIN for Appen shares, ensuring global tradability and identification.
👤 CEO
Value
Ryan Kolln
Analysis
Led by Ryan Kolln, focused on AI growth and streamlining operations post-Google contract loss.
🏢 Market cap
Value
A$203.47 million
Analysis
Market cap is near historical lows, reflecting investor caution and lost major clients.
📈 Revenue
Value
US$235.22 million (FY24), US$50.2m (Q1 FY25)
Analysis
Revenue declined year-on-year; excluding Google, underlying business showed some growth.
💹 EBITDA
Value
US$-1.5 million (Q1 FY25)
Analysis
EBITDA loss narrowed, indicating improvement but continued challenges to reaching profitability.
📊 P/E Ratio (Price/Earnings)
Value
N/A (negative earnings)
Analysis
Negative earnings prevent P/E calculation; signifies ongoing profit and turnaround concerns.
Key financial and operational indicators for Appen

How much is Appen stock?

The price of Appen stock is falling this week. As of today, APX shares trade at A$0.77, reflecting a 2.53% drop over the past 24 hours and a sharp 13.48% loss for the week. The company’s current market capitalisation stands at A$203.47 million, with an average three-month trading volume of 11.17 million shares. With negative earnings, Appen has no P/E ratio available, does not pay a dividend, and its stock beta is 1.03, signalling movement roughly in line with the broader market. After a volatile period, investors should be aware of continued risks and potential price swings.

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Our full analysis on Appen stock

Having carefully reviewed Appen Limited’s latest financial disclosures and analysed its stock performance over the past three years, we have synthesised insights from financial metrics, technical signals, market dynamics, and peer benchmarks using our proprietary algorithms. Our objective: to take a holistic, forward-looking view on this pivotal AI data services provider as it navigates a complex growth landscape. So, why might Appen stock once again become a strategic entry point into the booming artificial intelligence sector in 2025?

Recent Performance and Market Context

The last year has been eventful for Appen (ASX: APX), both in terms of operational developments and share price action. As of May 3, 2025, Appen trades at A$0.77 per share, with a market capitalisation of A$203.47 million. After a period of pronounced volatility, the stock has returned +26.23% over the past twelve months, highlighting its inherent dynamism—particularly impressive given the sector’s rapid transformation and Appen’s own strategic adjustments.

Digging deeper, the recent six-month window has seen a sharp retracement, with the share price declining nearly 60% from its late-2024 highs. This correction followed the cessation of a major services agreement with Google, which was well-flagged and has since been largely priced in by the market. Notably, Q1 2025 has delivered tangible improvements beneath the surface: when excluding the one-off Google effect, revenues are up 12% year-on-year, and EBITDA losses have been sharply reduced.

From a macro perspective, interest in AI has never been stronger. The generative AI revolution is fuelling enterprise spend, regulatory clarity is emerging (not least from the EU AI Act), and government AI adoption is accelerating. In this context, Appen’s expertise and global reach are coming to the fore, just as many of its clients seek robust data pipelines for innovative model development. There is a sense that the sector is shifting from experimentation to scaled deployment—an environment in which high-quality data vendors typically gain leverage.

Technical Analysis

Technically, Appen finds itself at an intriguing juncture. The price is currently trading below all key moving averages (5, 20, 50, 100, and 200 days), classically signifying a longer-term downtrend. The 5-day SMA sits at A$0.84 and the closely watched 200-day at A$1.78—betraying the extent of the recent selloff.

  • Relative Strength Index (RSI 14) at 34.09: Nearing oversold territory, where sharp reversals become more probable.
  • MACD at -0.13: While still negative, minor upticks here can presage a change in short-term momentum.
  • Williams %R (-88.89) and CCI (-112.21): Both suggest the selling intensity may be overdone, with a short-term bounce increasingly likely.
  • ADX at 33.01: Reflects a moderate but tiring trend, opening the path for a structural base-building phase.

Key support levels at A$0.75, A$0.70, and A$0.60 look robust, while resistance on the rebound is likely to manifest around A$0.85, then A$0.90, and A$1.00. Should a reversal materialise, these zones represent logical targets. Importantly, there is already evidence of buyers gradually stepping in at current levels, potentially laying the foundation for a new bullish phase.

Fundamental Analysis

Despite the headline net loss (EPS -A$0.14), Appen’s underlying business has demonstrated remarkable resilience. FY24 revenues came in at US$235.22 million, while Q1 FY25 brought in US$50.2 million—down 14% nominally due to the Google exit, but up 12% on a like-for-like basis. Notably, underlying EBITDA losses have materially narrowed (US$-1.5 million in Q1 FY25 vs. US$-2.9 million prior-year), and the cash position has improved to US$67.9 million.

This underpins both operational flexibility and strategic optionality—critical at a time when AI services customers are demanding sophisticated, high-volume data annotation and model evaluation at scale.

MetricValue
FY24 RevenueUS$235.22 million
Q1 FY25 RevenueUS$50.2 million
Q1 FY25 EBITDA lossUS$-1.5 million
Prior-year Q1 EBITDA lossUS$-2.9 million
Cash Position (Q1 FY25)US$67.9 million
P/S Ratio0.48x
P/B Ratio1.14x
EPS-A$0.14
Key financial metrics and valuation ratios for Appen as of Q1 2025.
FY24 Revenue
Value
US$235.22 million
Q1 FY25 Revenue
Value
US$50.2 million
Q1 FY25 EBITDA loss
Value
US$-1.5 million
Prior-year Q1 EBITDA loss
Value
US$-2.9 million
Cash Position (Q1 FY25)
Value
US$67.9 million
P/S Ratio
Value
0.48x
P/B Ratio
Value
1.14x
EPS
Value
-A$0.14
Key financial metrics and valuation ratios for Appen as of Q1 2025.

Valuation-wise, Appen trades at just 0.48x price/sales and 1.14x price/book—both well below historical ranges and sector peers, reflecting a deep discount to perceived fair value. While the absence of a meaningful P/E (due to current negative earnings) may be a sticking point for some, the forward-looking improvement in cash flows and margin trajectory more than justifies renewed attention.

  • Global crowd and proprietary AI platform: Over one million expert contractors, language coverage in 500+ dialects, and a robust, tech-enabled quality control apparatus.
  • Quality, diversity, and ethical rigor: A well-earned reputation for responsible data sourcing, increasingly important as clients face regulatory and reputational risk.
  • Long-term blue-chip partnerships: While concentrated, Appen continues to form deep, sticky relationships with leading tech firms, especially as governments and large enterprises look to operationalise AI at scale.

Volume and Liquidity

Appen’s liquidity profile remains healthy, with daily average trading volume exceeding 11 million shares. This level of market participation not only underwrites price discovery and narrowing spreads but supports the case for dynamic valuation improvements as the investment narrative shifts.

Moreover, a freely available float and concentrated institutional following ensure that any sustained change in sentiment—fuelled by fundamentals or new contracts—can translate rapidly into price action. The readiness of the market to absorb and transact size at current levels demonstrates ongoing investor confidence in Appen’s story.

Catalysts and Positive Outlook

  • Expansion into LLM and generative AI data services: Appen is capitalising on its expertise to win contracts with enterprises investing in the next generation of AI models.
  • Ongoing geographic expansion, especially in China: Early signs of traction provide scope for significant top-line upside.
  • Sustained platform investments: The progressive evolution of Appen’s proprietary data annotation and quality assurance layers should drive margin and competitive moat expansion.
  • ESG and regulatory tailwinds: As frameworks like the EU AI Act come into force, Appen’s ethically robust, transparent processes will appeal to risk-aware buyers.
  • Potential M&A or strategic partnerships: The strengthened balance sheet and ongoing cash generation open the door for significant corporate activity, which could unlock value or accelerate scale.
  • Management guidance: Explicit commitment to stabilising and then growing underlying revenues, with second-half weighting confirmed and ongoing focus on EBITDA positivity.

Much of the downside from the Google contract termination is now historic and well-understood by the market, clearing the way for upside from strategic wins in new markets and verticals.

Investment Strategies

For investors considering entry into Appen, the present environment offers several attractive set-ups—each with distinct time horizons and risk profiles:

  • Short-Term: Oversold technicals and solid support around A$0.75 can serve as a springboard for a technical rebound, particularly if accompanied by news on enterprise contract wins or sector-wide AI sentiment shifts.
  • Medium-Term: As the group executes on Q2 and H2 2025 earnings, incremental improvements in revenue mix, profitability, and regional expansion could drive multiple re-rate events. Piggybacking new product announcements or regulatory milestones may offer further catalysts.
  • Long-Term: For conviction buyers, Appen’s discounted price-to-sales ratio and leading global footprint in a secular growth industry present a compelling risk/reward skew. Successful adaptation to post-Google client diversification, continued platform investment, and the monetisation of the generative AI tailwind lay solid groundwork for multi-year value creation.

Ideal positioning may be at current support levels or on confirmation of a bullish reversal from oversold markers, maximising upside ahead of anticipated contract or earnings-related catalysts.

Is it the Right Time to Buy Appen?

In aggregate, Appen’s entrenched market presence, recovering cash flow profile, sector leadership in ethical AI data services, and improving operational trajectory make it a stock whose fundamentals increasingly justify renewed interest. The technical backdrop, while still sobering, now hints at the exhaustion of selling pressure—a classic scenario where long-term value investors often begin to build positions.

With a discounted valuation, robust cash position, and exposure to rapidly growing global AI adoption, Appen seems to represent an excellent opportunity for investors seeking to enter or expand their stake in the AI enablement value chain. The coming quarters are likely to see renewed momentum as management executes on diversification and innovation strategies, potentially reclaiming market leadership status as the AI cycle accelerates.

For those with a constructive view on the long-term AI adoption wave—and the fundamental necessity of high-quality training data—Appen may be entering a new bullish phase with substantial re-rating potential. As always, disciplined analysis and prudent risk management remain essential, but the investment proposition is becoming ever more compelling.

Appen now stands at the crossroads of innovation and value—a combination that may well reward those who recognise inflection points before they become consensus narratives.

How to buy Appen stock in Australia?

Buying Appen (ASX: APX) shares online is a straightforward and secure process when you use a reputable, ASIC-regulated broker in Australia. Retail investors have two main options: purchasing the shares directly (“spot/cash buying”), or trading Contracts for Difference (CFDs) to speculate on Appen’s price without owning the stock. Both methods can be accessed online with a few clicks, and transactions are protected by strict regulatory standards. Ready to get started? A detailed broker comparison, tailored to Australian investors, is available further down the page to help you choose the right platform.

Cash buying

A cash purchase means buying Appen shares outright with the intention of holding them in your name on the ASX. This is suitable for investors aiming for long-term growth or dividends (when available). When purchasing shares through an online broker in Australia, you’ll typically pay a fixed brokerage fee per trade—usually ranging from A$5 to A$20, depending on the platform and order size.

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Example

If Appen’s current share price is A$0.77, and you invest A$1,000 (including an average brokerage fee of A$5), you can buy around 1,292 shares of Appen.
Gain scenario:
If the share price rises by 10%, your shares would now be worth A$1,100.
Result: That’s a gross gain of A$100, or +10% on your investment (before any tax or other charges).

Trading via CFD

CFD trading allows you to speculate on Appen’s price movements without actually owning the shares. CFDs can be traded directly through regulated online brokers that offer leverage and the ability to open both long (“buy”) or short (“sell”) positions. The main costs here are the bid-ask spread (the difference between buy and sell price) and overnight financing fees if you hold your position beyond a single trading day.

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Example

Let’s say you open a CFD position on Appen with A$1,000 of your capital and use 5x leverage. This means your market exposure totals A$5,000.
Gain scenario:
If the share price rises by 8%, your position grows by 8% × 5 = 40%.
Result: That’s a gross gain of A$400, on your initial A$1,000 deposit (excluding trading fees and interest charges).

Final advice

It’s essential to compare online brokers’ fees, features, and regulatory protections before you invest. Each platform may offer different commission rates, market access, and tools—so choosing the right broker is a key step in your investment journey. Ultimately, the best method—cash buying or CFD trading—depends on your investment objectives, whether you seek ownership and long-term returns, or flexible short-term trading. To help you make an informed decision, you’ll find a detailed broker comparator further down the page.

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5 things to know about Avatrade

Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.

Who is AvaTrade for?

AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.

Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.

Who is AvaTrade for?

AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.

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Is IG reliable?

IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.

Why choose IG?

IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.

What are the fees at IG?

IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.

Who is IG for?

IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.

Is IG reliable?

IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.

Why choose IG?

IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.

What are the fees at IG?

IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.

Who is IG for?

IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.

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Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).

Who is eToro for?

eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).

Who is eToro for?

eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Our 7 tips for buying Appen stock

📊 Step📝 Specific tip for Appen
Analyze the marketEvaluate Appen’s current position in the AI data sector and consider the volatility indicated by recent technical signals.
Choose the right trading platformOpt for an Australian broker offering ASX-listed shares, competitive fees, and robust research tools for APX trades.
Define your investment budgetAllocate only a portion of your portfolio to Appen, given its share price swings and ongoing profitability challenges.
Choose a strategy (short or long term)Consider a long-term approach if you believe in the future growth of AI data services and Appen’s turnaround potential.
Monitor news and financial resultsRegularly track Appen’s quarterly results, management commentary, and news on shifts like client updates or regulatory changes.
Use risk management toolsUtilise stop-loss orders or alerts to help limit downside exposure in case of unexpected drops in Appen’s share price.
Sell at the right timePlan your exit strategy, potentially selling into technical rebounds or when Appen approaches your target price.
Key steps and tailored tips for buying Appen (APX) shares.
Analyze the market
📝 Specific tip for Appen
Evaluate Appen’s current position in the AI data sector and consider the volatility indicated by recent technical signals.
Choose the right trading platform
📝 Specific tip for Appen
Opt for an Australian broker offering ASX-listed shares, competitive fees, and robust research tools for APX trades.
Define your investment budget
📝 Specific tip for Appen
Allocate only a portion of your portfolio to Appen, given its share price swings and ongoing profitability challenges.
Choose a strategy (short or long term)
📝 Specific tip for Appen
Consider a long-term approach if you believe in the future growth of AI data services and Appen’s turnaround potential.
Monitor news and financial results
📝 Specific tip for Appen
Regularly track Appen’s quarterly results, management commentary, and news on shifts like client updates or regulatory changes.
Use risk management tools
📝 Specific tip for Appen
Utilise stop-loss orders or alerts to help limit downside exposure in case of unexpected drops in Appen’s share price.
Sell at the right time
📝 Specific tip for Appen
Plan your exit strategy, potentially selling into technical rebounds or when Appen approaches your target price.
Key steps and tailored tips for buying Appen (APX) shares.

The latest news about Appen

Appen’s Q1 FY25 results reveal improved EBITDA and robust cash flow, despite a revenue decline due to Google’s exit. Appen’s financial update for the first quarter of FY25, released on April 30, 2025, showed that underlying EBITDA improved to US$-1.5 million from US$-2.9 million the prior year, while net cash from operating activities rose to US$16.6 million, and the cash balance stood at an impressive US$67.9 million, a notable increase over December 2024. Although overall revenue fell 14% year-on-year following Google’s termination of its services agreement—a material setback given Google’s importance as a historical client—when excluding Google, revenue actually grew 12% compared to Q1 FY24. These figures indicate that Appen is stabilising its core business and making progress in diversifying its revenue base, a critical consideration for the Australian market given the impact of global tech relationships on local tech sector sentiment.

Appen successfully pivots towards generative AI and LLM data, capturing growth in new high-demand AI segments. Management confirmed ongoing investment and increased traction in large language model (LLM) and generative AI data solutions—a space experiencing accelerated expansion globally and in Australia. These segments require vast, high-quality datasets for model development, and Appen’s established infrastructure, sizable multilingual crowd, and ethical data framework position it well to serve major technology, retail, banking, and government entities both locally and abroad. This strategic shift is a constructive response to evolving AI industry needs, highlighting Appen’s intent to remain a critical partner as Australian enterprises and public agencies deepen their use of AI.

Technical indicators suggest Appen shares may be oversold, hinting at potential for an imminent technical rebound. While the stock trades well below all significant moving averages and has declined 13.5% in the past week, several momentum indicators—including the Williams %R and the Commodity Channel Index (CCI)—signal that the stock could be oversold in the short term. The Relative Strength Index (RSI) at 34.09 is also approaching traditionally oversold territory. For Australian market watchers, this technical setup suggests a possibility of a technical bounce, which could attract interest from traders seeking short-term opportunities amidst recent weaknesses.

Strong cash reserves and no significant debt provide Appen with strategic flexibility and resilience in pursuing growth opportunities. Appen’s cash position, at close to US$68 million with minimal debt obligations, offers reassuring financial stability. This liquidity empowers the company to continue investing in AI platform development, deploy resources for go-to-market initiatives in Australia and Asia, and cushion against potential market or revenue disruptions. For investors and analysts in Australia, such balance sheet strength is a positive signal, distinguishing Appen from more leveraged technology peers and enabling it to withstand interim headwinds while focusing on long-term expansion.

Australian AI and technology sector outlook remains constructive, with Appen well-placed amid government and enterprise digital transformation initiatives. Recent regulatory emphasis on ethical AI, alongside the federal government’s digital and data strategy, continues to foster AI ecosystem growth in Australia. Appen’s focus on ethical AI, linguistic diversity, and government partnerships aligns well with these national priorities, and the company’s thought leadership—such as the release of its “State of AI” report—reinforces its reputation among local stakeholders. These factors contribute to a supportive market environment for Appen, underpinning industry growth prospects despite near-term volatility in the company’s share price.

FAQ

What is the latest dividend for Appen stock?

Appen stock does not currently pay a dividend. The last dividend payment was in March 2022, when the company paid A$0.055 per share (50% franked). Since then, dividends have been suspended as Appen has focused on reinvesting in its AI data services business and strengthening its cash reserves. Investors should note that the company is prioritising growth and financial stabilisation over income distribution at this stage.

What is the forecast for Appen stock in 2025, 2026, and 2027?

Based on the most recent share price of A$0.77, the projected values for Appen stock are A$1.00 by the end of 2025, A$1.16 by the end of 2026, and A$1.54 by the end of 2027. These projections reflect optimism linked to Appen's efforts to capture expanding demand in the artificial intelligence data services market, bolstered by investments in generative AI, geographic expansion, and ongoing platform improvements.

Should I sell my Appen shares?

Holding Appen shares may be worthwhile for investors with a long-term perspective. Despite recent share price weakness and short-term headwinds, Appen's strong cash position, strategic focus on high-growth AI sectors, and established relationships with global tech players support its prospects. The company is well-placed to benefit from increasing demand for AI data services, and patient investors could be rewarded as sector momentum builds.

How are dividends and capital gains from Appen shares taxed in Australia?

For Australian residents, dividends from Appen (when paid) are typically subject to income tax, with franking credits reducing the overall tax burden where applicable. Capital gains from selling Appen shares are also subject to capital gains tax. Holding shares for over 12 months may entitle individual investors to a 50% CGT discount. Always keep records for tax reporting and consider your personal situation or seek professional tax advice.

What is the latest dividend for Appen stock?

Appen stock does not currently pay a dividend. The last dividend payment was in March 2022, when the company paid A$0.055 per share (50% franked). Since then, dividends have been suspended as Appen has focused on reinvesting in its AI data services business and strengthening its cash reserves. Investors should note that the company is prioritising growth and financial stabilisation over income distribution at this stage.

What is the forecast for Appen stock in 2025, 2026, and 2027?

Based on the most recent share price of A$0.77, the projected values for Appen stock are A$1.00 by the end of 2025, A$1.16 by the end of 2026, and A$1.54 by the end of 2027. These projections reflect optimism linked to Appen's efforts to capture expanding demand in the artificial intelligence data services market, bolstered by investments in generative AI, geographic expansion, and ongoing platform improvements.

Should I sell my Appen shares?

Holding Appen shares may be worthwhile for investors with a long-term perspective. Despite recent share price weakness and short-term headwinds, Appen's strong cash position, strategic focus on high-growth AI sectors, and established relationships with global tech players support its prospects. The company is well-placed to benefit from increasing demand for AI data services, and patient investors could be rewarded as sector momentum builds.

How are dividends and capital gains from Appen shares taxed in Australia?

For Australian residents, dividends from Appen (when paid) are typically subject to income tax, with franking credits reducing the overall tax burden where applicable. Capital gains from selling Appen shares are also subject to capital gains tax. Holding shares for over 12 months may entitle individual investors to a 50% CGT discount. Always keep records for tax reporting and consider your personal situation or seek professional tax advice.

P. Laurore
P. Laurore
Finance expert
HelloSafe
Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.

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