What Happened?

A number of stocks jumped in the afternoon session after stocks extended their rebound, led by strong gains in the technology sector, as renewed optimism surrounding U.S.–China trade negotiations lifted investor sentiment. 

Contributing to the bullish tone was a standout earnings report from enterprise software leader ServiceNow, which topped Wall Street's expectations on RPO, profit, and earnings. More importantly, the company's remaining performance obligations (RPO), a key forward-looking metric for future revenue, gave investors confidence that enterprise customers were not pulling back spending amidst uncertain macro. 

This optimism was further reinforced by solid results from Texas Instruments and Lam Research. Their performance was especially encouraging for semiconductor stocks, which had been under pressure due to their exposure to global trade tensions. These earnings results suggested that, despite macroeconomic uncertainties, demand in key tech verticals remained resilient.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Design Software company Cadence (NASDAQ: CDNS) jumped 6.2%. Is now the time to buy Cadence? Access our full analysis report here, it’s free.
• Document Management company DocuSign (NASDAQ: DOCU) jumped 5.5%. Is now the time to buy DocuSign? Access our full analysis report here, it’s free.
• Data Analytics company Health Catalyst (NASDAQ: HCAT) jumped 5.1%. Is now the time to buy Health Catalyst? Access our full analysis report here, it’s free.
• Automation Software company UiPath (NYSE: PATH) jumped 5.2%. Is now the time to buy UiPath? Access our full analysis report here, it’s free.
• Data Analytics company Amplitude (NASDAQ: AMPL) jumped 6.4%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.

Zooming In On Amplitude (AMPL)

Amplitude’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock gained 22.7% on the news that the company reported impressive fourth-quarter earnings: its sales and operating profits outperformed Wall Street's estimates. 

Looking ahead, management expected revenue growth to accelerate in 2025, with guidance implying a mid-single-digit increase. 

One notable bright spot was the company's ability to land larger enterprise deals, as seen in the 16% y/y growth in customers generating over $100,000 in ARR. This suggested a growing reliance on high-value contracts, which could provide more stable long-term growth. 

Overall, we think this was a solid quarter with some key areas of upside. Following the results, Baird upgraded the stock's rating from Hold to Buy, adding "While the macro still represents challenges, AMPL is in a very strong position to capture any increase in spend."

Amplitude is down 17.4% since the beginning of the year, and at $8.84 per share, it is trading 38.8% below its 52-week high of $14.44 from February 2025. Investors who bought $1,000 worth of Amplitude’s shares at the IPO in September 2021 would now be looking at an investment worth $161.22.

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