Amplitude slips even as DA Davidson calls it 'compelling' way to invest in mega trend
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Amplitude (NASDAQ:AMPL) shares slipped slightly more than 2% in early trading on Wednesday even as investment firm D.A. Davidson started coverage on the digital analytics software company, noting it is a "compelling" way to invest in the digital transformation mega trend.
Analyst Gil Luria started coverage on Amplitude (AMPL) shares with a neutral rating and per-share price target of $13, noting that the company is likely to benefit from the shift to digital products and digital interfaces coupled with tangible products. 
"We see Amplitude as a unique pure play on the digitization of products and product experiences," Luria wrote in an investor note. "As more consumption happens digitally, product managers have an explosion of data they can use to optimize their products." 
Luria added that Amplitude (AMPL), which is based in San Francisco, California-based has specialized in allow for a no-code, or low-code design that gives customers real-time insights into events, such as when a customer signs-up or purchases a product, and then analyzing that without the need to involve an IT department. The analyst added that this Amplitude (AMPL) differs from Salesforce's (CRM) Tableau and Adobe (ADBE)'s business intelligence products.
The company's sales efficiency initiatives are expected to generate "material" margin expansion, including a "significant slowdown" in adding employees, cutting marketing spending and a more efficient infrastructure. 
Luria noted that any hesitation in recommending the stock is tied to the collapse of Silicon Valley Bank (SIVB) and the impact it may have on Amplitude's (AMPL) customers over the next few weeks. 
Last month, Amplitude (AMPL) named Christopher Harms as the companyâs new CFO.
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