Appen/APX

Appen was for a while considered a high growth tech company. It did “stuff” in machine learning, specifically human annoted data sets. The problem is “human annotated” AI is not really AI, certainly not in the sense of LLM’s (large language models) or GPT (generative pre-trained transformers).

Usually, I just see declining revenue profile like that of the below, and if it isn’t a resources company (where the commodity might be out of favour and ex ante it could be attractive) I just assume it is in run off. Given the cap raise yesterday that “rule of thumb” heuristic continues to hold.

Maybe the rare exception is if margins are going up (lower margin stuff in run off, or being exited) but those are relatively rare examples.

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