Amplitude Stock Skyrockets: The Unstoppable Rally Defying Market Gravity
Wall Street’s latest darling just left bears in the dust.
Amplitude stock ripped through resistance this week, turning skeptics into bagholders as analysts scrambled to upgrade targets. The product analytics disruptor—once dismissed as 'just another SaaS play'—is now printing gains while legacy tech stumbles.
Catalyst? Try 'everything'
From whisper numbers getting obliterated to shorts getting squeezed, the stock became a meme without the meme-stock baggage. No pump needed—just relentless execution while bigger names flounder.
The new rules of engagement
Forget P/E ratios. In today’s market, growth narratives trump all—and Amplitude’s land-and-expand strategy is writing the playbook. Enterprises are voting with their wallets, even as CFOs elsewhere tighten belts.
One hedge fund manager (who asked not to be named) grumbled: 'Turns out, giving customers actual value works better than Metaverse PowerPoints.' Ouch.
This isn’t just a win—it’s a masterclass in how to run a public company while crypto bros and metaverse gamblers crash and burn. The rally might take a breather, but the thesis? Rock solid.
Image source: Getty Images.
The AI agent era is here
The big news for Amplitude this week was its Q2 earnings report, which showed building momentum in its Core business and excitement for its new AI agents, which it unveiled at an event in June and are currently in beta.
In Q2, annual recurring revenue (ARR) was up 16% to $335 million, and the company reported its strongest net-new revenue at $15 million since Q4 2022.
Reported revenue ROSE 14% to $83.3 million, which topped estimates at $81.3 million. Additionally, the company said the number of customers with ARR of $100,000 or greater rose 16% to 634.
On the bottom line, earnings per share (EPS) improved from breakeven in the quarter a year ago to $0.01, matching estimates.
In addition to its launch of AI agents in June, Amplitude has made a number of acquisitions to beef up its product as it pushes into AI.
The company was also ranked a leader in the first Forrester Wave report for digital analytics, showing the company is outperforming competitors and has a lot of potential growth ahead of it.
The response to the AI agents has been strong, and the company plans to begin selling them later this year.
What's next for Amplitude
Amplitude's guidance for Q3 and the full year was encouraging as it sees revenue of $85 million to $87 million for the current quarter, up 14% at the midpoint from a year ago.
After dealing with customer downsizing contracts after the pandemic tailwinds rolled off, Amplitude now looks to be in position to deliver steady growth with a goal of getting to 20% or higher.
The AI agents also have the potential to be a significant difference Maker for the company. There's still a lot of upside potential for the stock going forward.
