What Happened?

A number of stocks fell in the afternoon session after the major indices continued to pull back, with technology stocks accounting for most of the market's largest decliners. A key reason for this trend is that much of the recent market gains were concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed. 

Despite the downturn, some analysts viewed this as an opportunity to own some of the "Core AI winners." Dan Ives of Wedbush Securities commented, "In our view, the tech bull cycle will be well intact for at least another 2-3 years, given the trillions being spent on AI infrastructure/software/chips/power/apps looking ahead. This remains our tech playbook and investor roadmap." Additionally, mixed earnings reports from retailers, such as Target, have added to the market's weakness. Investors are closely monitoring these reports for insights into the broader economic health and the potential impact of new tariffs on inflation.

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:

• Semiconductor Manufacturing company Marvell Technology (NASDAQ: MRVL) fell 3.5%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
• Gig Economy company Angi (NASDAQ: ANGI) fell 3.3%. Is now the time to buy Angi? Access our full analysis report here, it’s free.
• Consumer Electronics company Peloton (NASDAQ: PTON) fell 4.1%. Is now the time to buy Peloton? Access our full analysis report here, it’s free.
• Data Analytics company Amplitude (NASDAQ: AMPL) fell 4.2%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.
• Consumer Subscription company Duolingo (NASDAQ: DUOL) fell 3.2%. Is now the time to buy Duolingo? Access our full analysis report here, it’s free.

Zooming In On Amplitude (AMPL)

Amplitude’s shares are very volatile and have had 27 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 previous big move we wrote about was about 22 hours ago when the stock dropped 4.1% on the news that investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.

Amplitude is down 0.4% since the beginning of the year, and at $10.66 per share, it is trading 26.2% 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 $194.53.

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