Amplitude's Lower Profit Outlook to Continue to Weigh on Stock, Bank of America Securities Says
MT Newswires Live05-07 23:03
Amplitude's (AMPL) lower profitability outlook is likely to weigh on the shares until revenue growth and annual recurring revenue meaningfully accelerates, Bank of America Securities said in a Thursday research report.
The company's additional operating expenses related to Statsig and unprecedented AI inference costs are impacting gross and operating margins, according to the note.
The Statsig collaboration can drive cross-sell opportunities in time, but there needs to be more tangible signs of solid execution to turn more positive, analysts wrote.
The brokerage said it downgraded the stock to neutral from buy and cut its price target to $8 per share from $10.
Price: 5.68, Change: -1.84, Percent Change: -24.47
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
