Shares of Appian Corporation (NASDAQ:APPN) fell today after investment research company CFRA initiated coverage of the company with a hold rating.
The tech stock fell by as much as 9.5% today and was down 5.6% at the end of the trading day.
CFRA Research said in an investor note today that the hold rating for the company's stock comes as the firm sees "better relative value elsewhere" in the low-code application platform (LCAP) market.
CFRA added that "we characterize APPN as a low-code play that remains further out on the risk curve, with a beta of nearly twice the overall market."
The firm estimates that Appian will have a loss per share of $0.41 for the full-year 2020 and $0.33 in 2021.
Aside from the investor note, Appian's stock could also be sliding today as a coronavirus vaccine begins the early stages of being distributed in the U.S. Appian's stock has soared 278% this year as investors have flocked to so-called stay-at-home stocks, and some investors may be concerned that the availability of a vaccine might stifle the growth of tech stocks.
Investors should remember Appian's share price drop today doesn't have anything to do with the company's underlying business, and instead appears to be a reaction to what an investment research firm said about the company, and potentially on vaccine news. All of this means that long-term Appian investors should likely stay the course with their initial investment thesis.