Entering text into the input field will update the search result below

APPEN - AI-Driven High-Quality Growth Stock Trading At A Fair Price

Jun. 03, 2020 11:19 AM ETAppen Limited (APPEF)5 Comments
ValueX profile picture


  • Exposure to strong secular growth in a nascent AI/Machine Learning industry.
  • Track record of growth and highly cash generative business model.
  • No material impact from COVID-19.

Appen Limited (APX:ASX) is a leading global provider of language, data annotation and technology solutions to enterprise and government clients. APX has demonstrated a track record of growth, driven by its strong customer relationships. APX’s business model leverages a crowd workforce to provide training data that is used for the improvement of AI and machine learning algorithms. And the company is well positioned to take advantage of the next stage of growth in the AI industry driven by the broader adoption of AI across non-tech industries including automotive, healthcare, financial services, retail and government.

APX counts eight of the top ten global technology businesses as its customers, and has benefited from three key trends: 1) ubiquitous penetration of search across online platforms; 2) increasing investment in data analytics and machine learning; and 3) broad based acceleration in digital transformation trends. According to APX, the global AI market is expected to grow to USD 169- 191 billion by 2025, with ~10% of AI investment spent on data labeling, this implies a USD 17-19 billion addressable market size.

What is structured and unstructured data?

Structured data is comprised of clearly defined/annotated data types which are easily recognized and searchable. This data regularly exists in relational databases such as CRM and ERP systems, and includes fields such as dates, phone numbers, credit card numbers, names and addresses. AI and Machine Learning can easily be applied to structured data to identify trends, and relationships to provide useful insights or search results.

However, the vast majority of data created is unstructured, this includes audio, images, video, e-mails and social media posts. AI/Machine Learning can be used to turn unstructured data into structured data, but this requires multiple iterations of training, testing and fine tuning of the Machine Learning Model. The key input for this process is training data that is tailored to the needs

This article was written by

ValueX profile picture
I am a value investor. Interested in mis-priced securities that presents a high upside potential with down-side protection in balance sheet. I am a trained research analyst and continue to practice in industry.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.