We came across a bullish thesis on Amplitude, Inc. (AMPL) on Value Investing Subreddit Page by sketchfag. In this article, we will summarize the bulls’ thesis on AMPL. Amplitude, Inc. (AMPL)’s share was trading at $14.44 as of Feb 20th. AMPL’s forward P/E was 97.09 according to Yahoo Finance.
A closeup of a computer screen with data-driven analytics and business solutions displayed.
Amplitude (AMPL) is set for a major re-rating as it reports earnings, with the stock near 52-week lows despite being at the center of a crucial business shift: the move from marketing-led growth to product-led growth. Traditional customer acquisition strategies reliant on ad spending are losing effectiveness, and companies now prioritize optimizing user engagement, retention, and monetization from within their products. Amplitude is a leader in this transformation, enabling businesses to harness product-led growth through its analytics platform.
The industry backdrop presents a massive opportunity. Google Analytics has become increasingly ineffective, with GA4 widely criticized, pushing businesses to seek alternatives that provide deeper insights. Amplitude has emerged as a top contender, consistently receiving strong feedback from product managers and industry forums. Additionally, AI-driven analytics is becoming essential as businesses demand actionable insights rather than raw data, positioning Amplitude as a major player in this transition. Major enterprises, including Shopify, Atlassian, and Peloton, rely on Amplitude, signaling its credibility and market relevance.
Financially, Amplitude has maintained steady revenue growth, consistently beating expectations while improving margins. The company is on the path to profitability, a crucial factor as growth stocks face scrutiny over high burn rates. This quarter’s guidance will be a key catalyst—strong forward-looking numbers could trigger a significant revaluation of the stock.
Amplitude has also been proactive in enhancing its platform through acquisitions. In October 2024, it acquired Command AI, a startup specializing in AI-powered user assistance, integrating features like in-product guides, announcements, and surveys to improve software usability. Despite its current undervaluation, Amplitude remains one of the best alternatives in the analytics space. Businesses need better tools, and Amplitude is well-positioned to capture this demand, making its current price an attractive entry point for investors.
Amplitude, Inc. (AMPL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held AMPL at the end of the third quarter which was 14 in the previous quarter. While we acknowledge the risk and potential of AMPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.