Down 41%, Is This AI Stock a Buy?
The Motley Fool
by newsfeedback@fool.com (Jeremy Bowman)February 26, 2026
AI-Generated Deep Dive Summary
The stock of Amplitude (NASDAQ: AMPL), a small-cap SaaS company specializing in digital product analytics, has dropped by 41% this year despite strong revenue growth and the recent launch of its Agentic AI Analytics platform. This sharp decline comes amid broader market concerns about AI disruption, which have sent tech and software stocks reeling. While Amplitude's performance shows resilience with one of its fastest quarters of revenue growth in recent years, investors are grappling with whether this dip presents a buying opportunity or signals deeper underlying issues.
The broader tech sector has been hit hard, with the iShares Expanded Tech-Software ETF, which tracks major players like Microsoft and Salesforce, down 27% due to fears over AI's impact. However, Amplitude's decline far exceeds that of its peers, falling 41% year-to-date. This stark contrast raises questions about whether the market is overreacting or if there are fundamental factors at play. The company's focus on digital product analytics and its new AI platform could position it as a key player in the evolving AI landscape, but investors are weighing these developments against the stock's steep decline.
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Originally published on The Motley Fool on 2/26/2026