2023-05-10 08:08:31 ET
Amplitude ( NASDAQ: AMPL ) shares tumbled nearly 20% in pre-market trading on Wednesday as investment firm KeyBanc Capital Markets downgraded the stock after the digital analytics software company issued a weak outlook.
Analyst Michael Turits lowered his rating to sector weight from overweight noting that the reduction in its growth outlook for 2023 is concerning, given the previous outlook was already well below consensus estimates, due in part to potential increased competition from Adobe's ( ADBE ) Product Analytics launch, which occurred in March.
"While we remain bullish on the [long-term] market opportunity for product analytics including as facilitator of "product-led" growth, we suggest investors wait for improved visibility into reacceleration given the macro impact on the priority of promising but still emerging product analytics spend, and on Amplitude's marketing analytics use cases," Turits wrote in an investor note.
During the first-quarter, Amplitude ( AMPL ) lost 4 cents per share, excluding one-time items, as revenue rose 25.2% year-over-year to $66.5M. Analysts were expecting an adjusted loss of 6 cents per share and $65.24M in sales.
For the second-quarter, the company expects sales to be between $66.5M and $67.2M, it expects sales for the full-year to be between $266M and $269M, below the previous range of $283M and $291M.
Analysts are largely bullish on Amplitude ( AMPL ). It has a BUY rating from Seeking Alpha authors , while Wall Street analysts rate it a BUY . Conversely, Seeking Alpha's quant system, which consistently beats the market, rates AMPL a HOLD .
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Amplitude plunges 20% as KeyBanc downgrades after weak outlook