Should You Think About Buying Amplitude, Inc. (NASDAQ:AMPL) Now?

Amplitude, Inc. (NASDAQ:AMPL), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NASDAQCM over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Amplitude’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Amplitude

What's The Opportunity In Amplitude?

Good news, investors! Amplitude is still a bargain right now. According to our valuation, the intrinsic value for the stock is $16.16, but it is currently trading at US$10.49 on the share market, meaning that there is still an opportunity to buy now. However, given that Amplitude’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Amplitude generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a negative profit growth of -1.5% expected next year, near-term growth certainly doesn’t appear to be a driver for a buy decision for Amplitude. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although AMPL is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. We recommend you think about whether you want to increase your portfolio exposure to AMPL, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on AMPL for some time, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about Amplitude as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Amplitude has 2 warning signs and it would be unwise to ignore these.

If you are no longer interested in Amplitude, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.