Australian AI star Appen flags first-half loss, shares plunge

Australia’s Appen Ltd, which runs artificial intelligence training for Facebook, Google and Amazon.com Inc, said a spending slowdown by clients would bring its first half-year loss since listing, sending its shares tumbling.

The warning on Tuesday shows how hefty spending cuts by global tech giants, facing raging inflation and rising interest rates, are filtering into the Australian share market where Appen has been an analyst favourite due to its high-profile customer base.

Adding to Appen’s challenges, new privacy features in Apple Inc products have reduced the ability of big advertisers including Facebook, which is owned by Meta Platforms Inc, and Alphabet Inc’s Google to target users, impacting their appetite for pinpoint-accurate user data, say analysts.