From Stock Story:

Shares of low code software development platform provider Appian (Nasdaq: APPN) fell 5.6% in response to the uncertainty revealed in the Fed’s December 2023 meeting minutes regarding rate cuts in 2024. The Fed hinted at a more accommodative interest rate stance last month, signaling three quarter-point rate cuts in 2024 due to taming inflation. However, the minutes showed that the path forward may not be as smooth or predictable as the markets may have thought, leading to increased uncertainty and market volatility. Appian’s shares are very volatile, with the market considering the news meaningful but not fundamentally changing its perception of the business. At $33.13 per share, Appian is trading 38.5% below its 52-week high of $53.90 from June 2023.

Regarding Appian’s financial performance, the company reported third quarter results with revenue and adjusted EBITDA guidance for the next quarter falling below Wall Street’s expectations. Full-year revenue guidance slightly missed estimates, and the company continued to burn cash. However, revenue and adjusted EPS beat expectations during the quarter, and there was a significant improvement in gross margin. Overall, it was a mediocre quarter for Appian. Investors who bought $1,000 worth of Appian’s shares 5 years ago would now be looking at an investment worth $1,296.

The news of uncertainty regarding rate cuts in 2024 has led to a 5.6% drop in Appian’s stock, showing how the market dislikes uncertainty and how big price drops can present buying opportunities for high-quality stocks. Appian’s volatility indicates the market considers the news meaningful but not fundamentally changing the perception of the business. Despite the company’s mediocre quarter, Appian’s stock is trading 38.5% below its 52-week high, presenting a potential opportunity for investors.



Read more: Why Appian (APPN) Shares Are Getting Obliterated Today