Today has been another volatile day in the markets. All major indices opened much higher this morning, as dip buyers returned to the scene. However, an early afternoon dip soon sent most major indices into the red. Now, Appian (NASDAQ:APPN) is one of the few stocks propping up the market. Currently, APPN stock is sup more than 30% for the day.
This move brings APPN stock to its highest level in a month — and it’s a nice turnaround for investors who have seen mostly selling pressure this year. As a low-code automation platform, Appian saw a surge in interest during last year’s meme stock rally. However, since breaching the $200 level in 2021, shares of APPN have settled down closer to the $50 level. That’s after today’s rise.
Like other high-growth stocks, investors have factored in bearish market conditions into the forward-looking prospects for this company. Appian is not yet profitable and, despite strong revenue growth, investors have largely looked elsewhere among growth stocks.
With that said, let’s take a look at why investors are buying APPN stock heavily today.
Why Is APPN Stock Soaring Today?
Since 2020, Appian has been involved in a legal dispute with rival Pegasystems (NASDAQ:PEGA). In the lawsuit, Appian alleged that Pegasystems illegally misappropriated trade secrets which allowed it to improve its products and sales training. Today, however, it was announced that Appian has won the suit, as well as damages totaling more than $2 billion.
Specifically, a Virginia jury gave its ruling on the case following a seven-week trial. The jury determined that Pegasystems had maliciously and willfully misappropriated Appian’s secrets. This whole ordeal stemmed from an employee who reportedly gained access to the company’s software as a government contractor and brought the technology to its rival.
This settlement is certainly large — and cheered on by Appian’s general counsel. While Pegasystems has said it will appeal the ruling, it looks like the market is assigning this $2 billion in cash to APPN right away. With a market capitalization just above $4 billion currently, the award certainly benefits the company’s balance sheet. Additionally, Appian has some much-needed growth capital to work with right now.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.