Shares of Appian (NASDAQ:APPN), the low code app-building platform, fell again today as some investors continued their exit from the tech sector.
The tech stock was down by 11.5% as of 3:39 p.m. EDT.
For the past few months, investors have begun shifting their attention to other areas of the economy that they believe will benefit as the U.S. emerges from the pandemic. With several COVID-19 vaccines available and states ramping up vaccine distribution, some investors are taking their money out of tech stocks -- which have performed very well over the past 12 months -- and putting it elsewhere.
Investors are seeing rising bond yield rates and easing pandemic restrictions across the country that are, in general, making them hopeful that more parts of the economy will open back open soon.
This collective shift in investing strategy has sent the tech sector tumbling, pushing Appian's stock down 22% year to date.
It's worth mentioning that today's share price drop doesn't have anything to do with any company-specific information.
Last month, Appian reported impressive fourth-quarter 2020 results, with cloud subscription revenue climbing 40%, subscription sales up 33%, and total revenue increasing 19%. Additionally, the company grew subscription customers by 50% in the full year 2020 and sales jumped 17% from 2019.
All of which means that long-term investors shouldn't worry about the company's underlying business just because of these recent share price dips.