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Why Appian Stock Fell Today

By Steve Symington - Oct 16, 2019 at 6:47PM

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Another no-news move for the low-code development platform company.

What happened

Shares of Appian (APPN -0.46%) declined 10.2% on Wednesday despite a lack of company-specific news. Though the broader markets fell modestly -- including a 0.3% drop in the tech-heavy Nasdaq index -- as investors digested trade-war concerns and disappointing retail sales data, there were no new press releases, analyst notes, SEC filings, or industry reports that might otherwise cause such a drop for Appian specifically.

So what

Stock market data and charts on a colorful display indicating volatility.

IMAGE SOURCE: GETTY IMAGES

That said, Appian shareholders should be accustomed to the stock's outsize volatility by now. It skyrocketed more than 50% in August, after the company announced strong second-quarter results and raised its full-year guidance. But shares of the low-code software development platform company followed with a 20% plunge last month without substantial news -- save perhaps the mere fact it had climbed so much the previous month.

Now what

It's worth noting that Appian shares are still up more than 70% year to date even after accounting for today's drop. So for now, I think investors would do well to ignore these kinds of no-news moves -- both positive and negative -- and focus instead on the health and momentum of Appian's underlying business. Over the long term, its share price should eventually respond accordingly.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Appian. The Motley Fool has a disclosure policy.

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Appian Stock Quote
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APPN
$52.13 (-0.46%) $0.24

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