Why is the Appen share price charging 6% higher?

A man reacts with surprise when her see a bargain price on his phone

A man reacts with surprise when her see a bargain price on his phone

The Appen Ltd (ASX: APX) share price is having a better day on Thursday.

And falling heavily this week, the artificial intelligence data services company’s shares are rebounding today.

In late trade, Appen’s shares are up 6% to $4.40.

Why is the Appen share price rising?

Today’s gain appears to have been driven by a couple of factors.

The first is the technology sector racing higher today following a very strong night on the tech-focused NASDAQ index.

This has led to the S&P/ASX All Technology Index rising 2.4% in afternoon trade on Thursday.

What else?

It is worth remembering that Appen’s shares have been smashed again this week following the release of a very disappointing trading update. Its shares are down 24% since the start of the week even after today’s gain.

Some investors may believe that the Appen share price had been oversold and have been picking up shares today.

Though, one broker that isn’t recommending investors jump in just yet is Macquarie. Yesterday, the broker responded to Appen’s update by downgrading its shares to an underperform rating with a reduced price target of $3.50.

This suggests potential downside of approximately 20% for investors from current levels.

The post Why is the Appen share price charging 6% higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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