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Amplitude's Lower Profit Outlook to Continue to Weigh on Stock, Bank of America Securities Says
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%
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