Amplitude stock acquisition of Kraftful gets thumbs up from Needham

Investing.com - Needham has reiterated its Buy rating and $16.00 price target on Amplitude Inc (NASDAQ:AMPL), currently trading at $12.88, following the company’s acquisition of voice of the customer solution Kraftful. The stock has shown strong momentum with a 62% return over the past year. According to InvestingPro analysis, Amplitude appears fairly valued at current levels.

The acquisition, announced before market open, will bring Kraftful’s technology that converts user feedback from sources like social media posts into qualitative feedback for product teams. Financial details of the transaction were not disclosed.

Needham believes the deal is primarily focused on acquiring Kraftful’s technology and employees, with Amplitude planning to integrate the solution into their platform while bringing over the team to strengthen their AI capabilities.

The research firm expressed a positive view on the acquisition, drawing parallels to Amplitude’s recent purchase of Command AI, which created a new cross-sell opportunity for the company.

This marks Amplitude’s continued expansion in the customer feedback and AI space, with the company strategically adding capabilities to its digital analytics platform.

In other recent news, Amplitude Inc. reported its Q1 2025 earnings, revealing a revenue increase to $80 million, which surpassed expectations and marked a 10% year-over-year growth. The company also noted a 12% increase in its Annual Recurring Revenue, reaching $320 million. In another development, Amplitude announced a strategic collaboration with Amazon (NASDAQ:AMZN) Web Services (AWS) to enhance customer experiences across various industries, using AI-powered insights to improve data-driven decision-making. This partnership aims to help companies better utilize customer data and create personalized digital experiences. Additionally, Amplitude’s stock received a price target upgrade to $15 from $13 by BofA Securities, which maintained a Buy rating, citing the company’s potential to gain market share. Needham also maintained a Buy rating with a $16 price target, expressing optimism about Amplitude’s new AI agents. These agents are designed to enhance the company’s existing platform by identifying and resolving issues semi-autonomously. These recent developments highlight Amplitude’s strategic initiatives and growth potential in the digital analytics space.

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