The Appen Limited (ASX: APX) share price was up as much as 3.5% today and was only a few cents away from an all-time high. Is it too late to buy?
About Appen
Appen provides data for machine learning and artificial intelligence. Basically, it provides and improves data for the development of artificial intelligence and machine learning products. With more than 20 years of experience in over 130 countries, Appen has firmly established itself as a global leader in this space.
APX Share Price Higher, No News
The Appen share price has continued moving higher today despite no specific news from the company since their annual report late last month. Since the beginning of March, shares have traded in a very narrow range, but the move today puts the share price just a few cents away from the all-time high closing price of $26.03.
While the company looks overvalued by traditional metrics, it has continued to surprise many investors and keeps pushing higher with the likes of Afterpay Touch Group Ltd (ASX: APT) and Altium Ltd (ASX: ALU).
Is It Too Late To Buy Appen?
While I would say Appen looks expensive, that hasn’t stopped the share price moving higher over the last 12 months.
The most recent annual report shows revenue growth of 119% and EBITDA growth of 206%, suggesting that the current price may be justified by the astronomical growth rate. If Appen continues to grow at this kind of pace, it could be a very profitable long-term investment.
The share price is also fairly volatile, so a patient investor may get an opportunity to buy at a more reasonable price. Whatever your strategy, Appen is certainly a company worth looking at.
For other growth share ideas, check out the companies in the free report below.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
