Amplitude (AMPL): A Fresh Look at Valuation After Launching New AI Visibility Feature

Amplitude (AMPL) just rolled out its new AI Visibility feature, designed to help marketers understand and boost how their brands are seen across platforms like ChatGPT, Claude, and Google AI Overview. The capability is included for all Amplitude customers, and a free version is available for non-customers as well.

See our latest analysis for Amplitude.

This push into AI features comes on the heels of several notable partnerships and product rollouts, including a collaboration with GitHub and an open beta for Amplitude’s AI Agents. While the 1-year total shareholder return stands at a healthy 8.1%, the company’s share price hasn’t followed suit, with shares down about 6% year-to-date and off nearly 13% over the last three months. This hints that momentum is still searching for a clear uptrend despite these innovations.

If expanding digital tools like Amplitude’s new AI features pique your interest, now’s a great moment to discover See the full list for free.

With new AI capabilities rolling out and the stock trading well below analyst targets, investors are left to consider whether Amplitude is genuinely undervalued or if the current price already reflects all future potential.

Most Popular Narrative: 35.9% Undervalued

Amplitude's most widely followed valuation narrative assigns a fair value that is over a third higher than the recent close. This highlights a substantial gap between analyst expectations and the market's current stance.

The continued investment and leadership in AI-driven analytics, supported by multiple strategic talent acquisitions and rapid product innovation (for example, AI agents, Guides, Surveys), position Amplitude to capitalize on the growing enterprise need for automated, actionable insights. This creates opportunities to increase ACV and command premium pricing, ultimately supporting margin expansion and stronger earnings.

Read the complete narrative.

Wondering what stands behind such bullish conviction? The narrative's fair value is not just about growth hype. It hinges on game-changing assumptions for revenue, margins, and competitive tech prowess. Are you ready to see which bold projections make this estimate tick?

Result: Fair Value of $15.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, weak AI monetization and rising costs could threaten both Amplitude’s growth narrative as well as its ability to deliver on analyst expectations.

Find out about the key risks to this Amplitude narrative.

Another View: Market Multiples Tell a Different Story

Taking a look at Amplitude’s price-to-sales ratio, the company trades at 4.2 times sales. This is slightly higher than the peer average of 3.7 but below the broader US Software industry at 5.2. This suggests some valuation risk if the market expects Amplitude’s growth to catch up, but also a potential opportunity if the business outpaces competition. Could recent innovations justify trading at a premium, or is there still room to fall?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Amplitude Narrative

If you have a unique perspective or want to dig into the numbers yourself, you can quickly craft your own Amplitude valuation and outlook. Do it your way

A great starting point for your Amplitude research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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