The Appen Ltd (ASX: APX) share price is in the green today.
Appen shares are currently trading at $3.465, a 1.61% gain, after jumping 6.7% to an intraday high of $3.64 early in the session.
Let's take a look at what may be impacting the Appen share price today.
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Technology shares rise
Shares in the machine learning and artificial intelligence company are rising today, but they are not alone among ASX technology shares. The Altium Limited (ASX: ALU) share price is 1.13% higher at the time of writing, while Wisetech Global Ltd (ASX: WTC) is 1.01% ahead. The Megaport Ltd (ASX: MP1) share price is up 1.86%.
Meantime, the S&P/ASX All Technology Index (ASX: XTX) is 0.48% higher in early afternoon trade.
Technology shares, including Appen, are rising after the NASDAQ in the US also lifted overnight. The tech-heavy Nasdaq index gained 0.76%, or 87 points. Apple Inc (NASDAQ: AAPL) rose 2.51% while Meta Platforms Inc (NASDAQ: META) leapt 1.18%.
However, Citi analysts see headwinds for Australian technology stocks in FY23, according to a Thomson Reuters report cited on NAB trade.
The broker is forecasting more downside to consensus for both revenue and earnings before interest, tax, depreciation, and amortisation (EBITDA) in FY23 results across the sector. Citi puts this down to slowing economic growth and recession fears.
However, the broker highlighted the August reporting season was "better than expected" with just Appen and Zip predicting revenue downgrades.
Citi also reportedly expects costs of sales to "reduce cost growth in an uncertain environment", potentially leading to profitability margins being better than expected.
Appen reported revenue of $182.9 million in the first half of calendar year 2022, down 7% on the prior corresponding period.
Share price snapshot
Appen shares have dropped 63% in the past year, while they have lost 69% year to date.
For perspective, the S&P/ASX All Technology Index (ASX: XTX) has shed 32% in the past 12 months and around 29% in 2022 so far.
Appen has a market capitalisation of $427 million based on the current share price.
