What Happened?
Shares of digital analytics platform Amplitude (NASDAQ:AMPL) jumped 5.9% in the afternoon session after the investment firm BTIG initiated coverage on the stock with a "Buy" rating and a $14 price target.
In its report, BTIG called Amplitude a leader in the product analytics field. The firm noted that after a period of slower growth, the company shifted its focus to larger enterprise customers, which helped improve key growth metrics and led to an acceleration in revenue. The analysts also expressed confidence that generative AI could serve as a positive factor for the company in the medium term. The $14 price target represented a potential upside of about 27% from the stock's price at the time of the announcement.
Is now the time to buy Amplitude? Access our full analysis report here.
What Is The Market Telling Us
Amplitude’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 27 days ago when the stock gained 3.6% on the news that strong results from chipmaker Nvidia, eased lingering concerns about a potential bubble in the artificial intelligence sector.
The tech giant delivered another blockbuster earnings report, with sales, profits, and guidance exceeding Wall Street expectations. CEO Jensen Huang let the data do the talking as he acknowledged the growing sentiment about an AI bubble, while affirming that sales for Nvidia's current-generation GPU, called Blackwell (mostly used for AI applications), are "off the charts." A stronger-than-expected September jobs report from the Bureau of Labor Statistics reinforced this bullish sentiment. Nonfarm payrolls rose by 119,000, easily surpassing the consensus estimates of 50,000. While the unemployment rate ticked up to 4.4% and wage growth slowed slightly, the data suggest the U.S. economy remains on a firm footing.
While this resilience made some investors unsure of the Fed's December rate decision, the market welcomed the news, rallying on the strength of a solid economy and a booming tech sector.
Amplitude is up 8.9% since the beginning of the year, but at $11.66 per share, it is still trading 19.3% below its 52-week high of $14.44 from February 2025. Investors who bought $1,000 worth of Amplitude’s shares at the IPO in September 2021 would now be looking at an investment worth $212.68.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report.