Shares of Appian (NASDAQ: APPN) were falling today after the low-code cloud software company missed bottom-line estimates in its third-quarter earnings report. As a result, the stock closed down 12.2%. © Getty Images A digital image of a cloud So what
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Will Appian stock recover?
The 7 analysts offering 12-month price forecasts for Appian Corp have a median target of 60.00, with a high estimate of 77.00 and a low estimate of 37.00. The median estimate represents a +46.23% increase from the last price of 41.03.
Is Appian a good stock to buy now?
Out of 6 analysts, 3 (50%) are recommending APPN as a Strong Buy, 1 (16.67%) are recommending APPN as a Buy, 1 (16.67%) are recommending APPN as a Hold, 0 (0%) are recommending APPN as a Sell, and 1 (16.67%) are recommending APPN as a Strong Sell.
What happened to Appian?
Shares of low-code automation software platform Appian (APPN -5.71%) collapsed in an avalanche of selling Wednesday.
Why is Appian stock down so much?
Shares of Appian, already down more than 30% year to date, is at risk of slipping further. The company's recent Q3 earnings release failed to inspire enthusiasm, especially as it took down its full-year adjusted EBITDA outlook. Appian plays in a very competitive space against other platform software vendors.
Should I sell my Appian stock?
The consensus among Wall Street research analysts is that investors should "hold" Appian stock. A hold rating indicates that analysts believe investors should maintain any existing positions they have in APPN, but not buy additional shares or sell existing shares.
Is APPN a good company?
APPN has a Quality Grade of C, ranking ahead of 64.9% of graded US stocks. APPN's asset turnover comes in at 0.691 -- ranking 229th of 563 Business Services stocks. SCWX, DHX, and OOMA are the stocks whose asset turnover ratios are most correlated with APPN.
Is Appian profitable?
Appian stock is not for the risk-averse, as the company is not yet profitable. But with a recent market valuation of around $4 billion, the company has a lot of room for growth.
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What happened
Shares of Appian (NASDAQ: APPN) were pulling back today as the high-growth tech stock was swept up in the market sell-off in response to rising interest rates.
So what
Stocks plunged broadly as investors were spooked by rising Treasury note yields. The 10-year T-note rose again today, increasing 3.4% to close at 1.53%, its highest level since June.
Now what
Appian will have a chance to shift the spotlight back onto the business next Monday when the company holds its first ever Investor Day, sharing updates on the company's strategy, financials, and key business initiatives, among other areas.
Investors are likely cashing in on some of the shares' recent gains
Chris has covered Tech and Telecom companies for The Motley Fool since 2012. Follow him on Twitter for the latest tech stock coverage. Follow @tmfnewsie
What happened
Shares of Appian ( NASDAQ:APPN) tumbled today as investors sold off their shares following last week's massive price run-up.
So what
Appian's share price skyrocketed 55% last week, pushing the company's stock up an impressive 407% since the beginning of this year. It's unclear what led investors to boost the company's share price so quickly last week, but it now appears that some investors are taking the stock's gains and cashing out today.
Now what
Investors who bought Appian intending to hold on to it for the long term shouldn't be too concerned with today's share price drop. Nothing has fundamentally changed with the core business, which means that most investors should stay the course and ignore some of the selling taking place.
What happened
Shares of Appian Corporation ( APPN 0.24% ), a provider of cloud-based, low-code software, tumbled today, likely because 10-year Treasury yields are rebounding.
So what
While there wasn't any company-specific news that caused Appian's stock to fall today, inventors were likely responding to a bump in Treasury yields. The increase of the yields has some investors moving away from growth sectors in the market.
Now what
With Appian's stock falling last month and Treasury yields rising right now, some Appian shareholders may be inclined to think that the company's impressive returns are coming to an end. But investors should focus on the company's underlying business and its long-term potential, not short-term share-price drops.
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What happened
Shares of Appian (NASDAQ: APPN) were falling today after the low-code cloud software company missed bottom-line estimates in its third-quarter earnings report.
So what
Cloud subscription revenue, the company's key metric, was up 36% to $46.7 million, topping the high end of its own guidance range. Overall revenue, which includes on-premise subscriptions and professional services, increased 19% to $92.4 million, which reflect a shift in the services business to its partners.
Now what
The company's fourth-quarter guidance called for cloud subscription revenue of $48.8 million to $49.3 million, for 32% to 33% growth. And it sees overall revenue increasing 16% to 17% to a range of $95 million to $95.5 million, which is slightly above estimates at $94.2 million.
What is the new accounting standard for Appian?
Appian adopted a new accounting standard called ASC 606 in 2019 that makes its year-over-year comparisons a bit wonky. That's because ASC 606 alters the timing of revenue recognition when compared with its old accounting standard (called ASC 605), which negatively affects Appian's revenue and profitability.
What is Appian 605?
These numbers might not sound great, but they look better when viewed through ASC 605, which is Appian's old accounting standard. Under ASC 605, Appian outperformed its guidance ranges (and Wall Street's estimates) across the board. Image source: Getty Images.
Who is Brian Feroldi?
Brian Feroldi has been covering the healthcare and technology industries for The Motley Fool since 2015. Brian's investing strategy is to buy high-quality companies and then let compounding work its magic. See all of his articles here. Follow @brianferoldi