Bank of America downgrades Amplitude on profitability concerns, cuts price target to $8

Bank of America downgraded Amplitude from 'Buy' to 'Neutral' due to rising execution risks and weaker profitability outlook. The price target was lowered from $10 to $8 as increased operating expenses from its expanded strategy and AI costs pressure margins. The bank now expects slower growth and lower profitability, forecasting a 'Rule-of-19' profile by 2027, compared to peers' stronger metrics. While long-term potential exists through its Statsig partnership, near-term risks and slower revenue growth keep the outlook cautious.