Why Appian Stock Tumbled Today

What happened

Shares of Appian Corp. (NASDAQ: APPN) fell today as investors sold off stocks across most industries, including tech stocks.

Appian's share price fell by as much as 10.4% today and ended the trading day down by 9.5%.

So what

The market reacted negatively to news that coronavirus cases were surging in the U.S. and around the world. The U.S. reported more than 60,000 coronavirus cases on Sunday, and new COVID-19 restrictions have been put in place across France, Italy, and other parts of Europe as cases rise. The rise in cases has investors skittish today, and as a result, the S&P 500 dropped by 2%.

A red line graph and bar chart.

Image source: Getty Images.

Some Appian investors may have had a stronger-than-usual reaction to today's news because the company will report its third-quarter earnings next week. Earnings season can be a particularly volatile time for stocks as some investors take the gains that they've earned and sell shares ahead of earnings reports.

Additionally, some investors may have reacted today to the fact that Congress has failed to come together and pass an additional stimulus package to help the unemployed in the U.S. Investors had been hoping that a potential deal would be reached before the upcoming presidential election, but those hopes are beginning to fade.

Now what

Even with today's share price drop, Appian's stock is still up 85% year to date. But Appian could experience some additional price swings leading up to its Nov. 5 earnings report. That doesn't mean Appian won't make a good investment over the long term, but jittery investors are processing a lot of negative information about the economy and the pandemic, which could bring additional share price swings.

10 stocks we like better than Appian
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Appian wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2020

Chris Neiger 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More