Balanced Outlook: Amplitude’s Growth Potential and Valuation Concerns Justify Hold Rating

William Blair analyst Arjun Bhatia has maintained their neutral stance on AMPL stock, giving a Hold rating on April 24.

Arjun Bhatia has given his Hold rating due to a combination of factors that reflect both optimism and caution. Amplitude has shown promising signs of growth with a 12% increase in ARR, which is above expectations and indicates that their platform strategy is beginning to yield results. The company has successfully expanded its capabilities, allowing it to address multiple product-related issues, thus positioning itself well in a fragmented market. This has led to more customers signing up for multiyear contracts and adopting multiple products from the start.
Despite these positive developments, Bhatia maintains a Hold rating as the stock trades at a discount compared to its peers, with a valuation of 2.8 times the 2026 revenue estimate. While there is optimism about the company’s potential for further growth and improved operating margins in the latter half of the year, the current valuation and the need for more significant top-line acceleration and profitability progress suggest a cautious approach. Therefore, the Hold rating reflects a balanced view of Amplitude’s current performance and future potential.

In another report released on April 24, Scotiabank also maintained a Hold rating on the stock with a $10.00 price target.

Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AMPL in relation to earlier this year.