Shares of Amplitude rose after the digital-analytics company's stock was given a strong buy rating by Raymond James analysts.
Shares were up 16% to $8.90 in Wednesday afternoon trading. The stock is down 23% this year.
The analysts initiated their coverage of the stock with a strong buy rating and a $10 price target. They said the company is entering years of growth acceleration and margin expansion, driven by platform advantage and artificial-intelligence opportunities.
The stock has been excessively punished due to AI software displacement fears and company-specific concerns around execution, the analysts added.
"While 2026 introduces incremental investment, AI monetization, and restructuring questions, we believe 1) conservative estimates could force numbers higher through FY27, and 2) downside implies a truly broken software outcome that appears unlikely if Amplitude's behavioral data foundation and action-oriented platform remain relevant in the agentic era," the analysts wrote.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
July 01, 2026 13:03 ET (17:03 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments