Why is the Appen share price jumping 10% on Monday?

The Appen Ltd (ASX: APX) share price has been hit hard in 2022, but the technology company has recovered some of that lost ground today.

At the time of writing Appen shares are up 10%.

There hasn’t been any material news released by the company today.

However, the broker Citi recently said its rating on the business is neutral. The price target is $6.60, which implies a possible rise of around 40% over the next year, if the broker ends up being correct.

After looking at the recent result from competitor Telus International, it seems that Appen may be losing ground.

Appen’s recent FY22 update was not ideal.

At the current Appen share price, it could still be an interesting takeover target.

Earnings recap

FY22 half-year group revenue was down 7% to $182.9 million. This was largely due to a lower contribution from the global division. This was the result of weaker digital advertising demand and a resultant slowdown from some of its largest customers.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was down 69% to $8.5 million because of lower revenue and investments.

The company reported a statutory net loss after tax of $9.4 million. That’s down from a net profit of $6.7 million in the prior corresponding period.

However, it is expecting to achieve higher volumes in the latter part of the second half. It puts this down to the delivery of seasonal projects and a ramp-up in existing projects.

But, Appen did say that with no improvement in July trading, there remains “uncertainty about a continued slowdown of spending from global customers and their exposure to weaker digital advertising demand”.

Appen share price snapshot

Appen shares are down 56.5% since the beginning of 2022.

The post Why is the Appen share price jumping 10% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Worried about how ASX 200 tech shares might perform this earnings season? Here’s what to watch
• Why is the Appen share price charging 6% higher?
• Why Appen, Centuria Industrial, NRW, and Sayona Mining shares are pushing higher
• Why Appen, ASX, Credit Corp, and Newcrest shares are dropping today
• When were insiders last buying up Appen shares?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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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