Stock to Watch in January: Appian

  2020 was a big year for the low-code software development firm Appian. The company started the year by making Machine Learning (ML) and Artificial Intelligence (AI) purchases and expanding the subscription platform features. Things got tough for the company when many of the company's potential customers decided to stop spending due to the COVID-19 pandemic. However, as progress continued in 2020, Appian's revenue growth accelerated at the right rate, with subscription revenues increased by 34 percent in the third quarter compared to the same period the previous year.

As of now, Appian's market cap is just over $ 11 billion.

As a result of short sellers closing their positions and sending the stock price higher, there was a crazy 150 percent rise in the share price in the last three months of the year. As of now, Appian's market capitalization is valued at just over $ 11 billion, or 38 times 12-month sales. This is the high price tag even for a tech services company like Appian, in an era of growing demand from organizations struggling to keep up with the changes caused by the pandemic. The quality of the company did not change at all during this period when the share price changed considerably. The company continues to gain new partnerships and new customer registrations, as the Low-code platform causes new applications to be developed quickly and easily. It is also expected to add automation functions, expand the company by double-digit percentages for the foreseeable future, and enter the artificial intelligence industry.

If Appian reports a strong finish in the fourth quarter

Technology researcher IDC expects artificial intelligence spending to increase by 12 percent in 2021 on a global basis alone, while in 2024 it predicts that increase will reach nearly double that percent and hit $ 300 billion. With all this in mind, while there are acceptable questions about whether Appian's very high valuation will last in the near term, its long-term potential seems greater than ever. Before the last quarterly update of 2020, it is useful to keep track of stocks. It will also be ready to buy more in the long term if Appian reports a strong end in the fourth quarter.

Source: https://www.fool.com/

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