In This Article:
Key Points
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Amplitude had a promising public offering, but the stock mostly struggled since 2022.
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After the recent acquisition, the company has finalized its platform, making its analytics software more compelling.
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It's set to launch an AI agent in June that could be a significant growth driver.
Driven by the artificial intelligence (AI) boom, large-cap tech stocks soared since the pandemic.
Even factoring in the recent correction in the Nasdaq Composite, the tech-heavy large-cap index is up 16% from its 2021 peak, and the Nasdaq-100, which features the 100 largest Nasdaq-listed companies, is up more than 25%.
However, small-cap stocks haven't been so lucky. The Russell 2000 small-cap index is now down 16% from its peak in 2021, and small-cap tech stocks have struggled, too, as they've largely missed out on the AI boom.
One such stock is Amplitude (NASDAQ: AMPL), a cloud software company that specializes in digital product analytics. Amplitude went public in September 2021 just as the pandemic stock market was peaking. After initially surging out of the gate as its sales were booming, Amplitude tumbled in 2022 along with the much of the rest of the software sector.
Sales growth slowed as many of its customers had overbought during the pandemic when digital tools were seen as a necessity and the business struggled to grow as customers reduced their spend.
However, three years since that crash, the company is now moving forward as those churns have finished, and it's made acquisitions and product launches that have built out its platform to where management has wanted it to be.
The stock currently trades at nearly $12 a share and has a market cap of $1.5 billion. That along with its growth potential make it an attractive stock to buy even with just $1,000.
Where Amplitude stands today
Following the acquisition of Command AI last October, Amplitude finished building out its platform so that its customers no longer need to supplement it with point solutions.
Amplitude does everything its customers want from a product analytics platform, which they use to track how their e-commerce websites perform. Those products include guides and surveys, which allow companies to add bubbles to guide users along and survey them about their experience; session replay, which allows companies to see how users moved through their website; and heat maps, which indicate where users are spending the most time with their mouses.
Amplitude is introducing a marketing analytics tool next week, and will launch its AI agent in June, which will allow its customers to get recommendations directly from the AI agent rather than interpreting the data themselves. In an interview with The Motley Fool, CEO Spenser Skates said customers will "have hundreds of agents that are always looking over your data for you ... and finding trends and insights about how you can improve your product from that."