Please ensure Javascript is enabled for purposes of website accessibility

Why Appian Stock Popped Today

By Chris Neiger - Mar 11, 2021 at 3:36PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors are putting their faith back into tech stocks.

What happened

Shares of Appian (APPN 6.98%) rallied today as investors jumped back into the tech sector, after dumping tech stocks last week. 

The low-code, app-building company had gained 12.7% as of 3:10 p.m. EST.

So what 

There wasn't any company-specific news that helped push Appian's stock higher today, but investors are likely reacting to bond yields sliding lower over the past few days. Today's yield rate was around 1.52%, down from 1.62% earlier this month. 

A white line graph on a blue background.

Image source: Getty Images.

Investors have been watching the bond yield rate as an indicator that it's time to leave high-growth stocks for more stable investments in other markets. When yields go up, some investors assume other parts of the economy are going to grow and that keeping money in high-growth (and potentially volatile) tech stocks isn't the best strategy. 

But with yields falling over the past few days, some investors have apparently abandoned that theory and are running back to tech stocks.

Appian's stock has benefited from this shift back to the tech sector and the company's share price is up 27% this week.  

Now what 

With today's gains, Appian's stock has skyrocketed more than 300% over the past 12 months. Long-term investors may want to keep in mind that high-growth stocks will often have some big price swings -- in both directions -- and they shouldn't get too focused on how daily bond yield rates or other news items affect the company's stock.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Appian Stock Quote
Appian
APPN
$44.47 (6.98%) $2.90

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
322%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.