Appen shares extend 200% rally on no news
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The news: Shares in data services company Appen surged again on Friday to break $1.40 a share, up 7% heading into the close.
The numbers: Appen has surged more than 200% since late July when it was trading around 43 cents a share.
The context: The rally since then has been questioned by the ASX with the exchange issuing a speeding ticket on Monday, querying why the stock had moved so strongly on no news flow.
In response, Appen said it had "no explanation" for why investors were buying up the stock so strongly.
The last announcement the company made to the market was on 30 July in the form of its quarterly activity statement, in which it reported Q2 revenue of $55 million, down 16% on Q2 last year.
Appen was briefly valued at north of $5 billion at its peak in August 2020 before crashing to below $100 million as big tech clients tightened up their spending and walked away from Appen's services.
The company has more recently been selling a turnaround story, suggesting it could take advantage of the AI boom and its many proponents.
While that story failed to capture attention in 2023, the stock has picked up momentum more recently. Trading at under 30 cents in January, Appen's share price briefly broke $1 in March before steadily declining through to July.
It is expected to release its 2024 half year results on 30 August.
