What Happened?
Shares of data analytics software provider Amplitude (NASDAQ:AMPL) jumped 3.2% in the after-market session after continued positive momentum as the company received positive commentary from Wall Street analysts following a strategic acquisition.
Investment firms Benchmark and Needham reiterated their "Buy" ratings for the digital analytics company, with price targets of $15 and $16, respectively. This renewed confidence comes after Amplitude announced its acquisition of Kraftful, an AI-native "Voice of Customer" (VoC) startup.
While financial details were not disclosed, analysts see the move as a strategic step to enhance Amplitude's AI capabilities and platform. The acquisition is expected to strengthen Amplitude's product by integrating Kraftful's technology, which uses AI to analyze unstructured user feedback and provide actionable insights. Analysts believe this will create opportunities for revenue growth through cross-selling. Adding to the positive sentiment, BofA Securities also raised its price target on the stock, citing the company's new AI product launches and a collaboration with Amazon Web Services.
After the initial pop the shares cooled down to $12.23, up 1.5% from previous close.
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What Is The Market Telling Us
Amplitude’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Amplitude is up 14.3% since the beginning of the year, but at $12.23 per share, it is still trading 15.3% below its 52-week high of $14.44 from February 2025. Investors who bought $1,000 worth of Amplitude’s shares at the IPO in September 2021 would now be looking at an investment worth $223.18.
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