Here’s why the Appen (ASX:APX) share price is sinking

The Appen Ltd (ASX: APX) share price dropped by 9% today after it was on the receiving end of a negative broker report.

Analysts at Macquarie Group Ltd (ASX: MQG) issued a painful downgrade of expectations for Appen this year.

Here’s what happened to the Appen share price

Appen shares suffered after Macquarie downgraded the technology business from ‘outperform’ to ‘underperform’.

Macquarie thinks that the FY20 result is now going to be a ‘non-event’ because of increasing competition and this will cause Appen to lose market share. But the broker doesn’t think this competition is a short-term problem – the headwinds could continue for the rest of 2021. It may then lead pricing competition for Appen.

The broker…