Amplitude (AMPL) shares fell more than 21% on May 7, 2026. The decline followed the company's first-quarter earnings report released on May 6.
Amplitude reduced its 2026 non-GAAP operating income guidance to a range of $2.5 million to $6.5 million. This represents a significant cut from the previous forecast of $7 million to $13 million.
Management attributed the weaker outlook to margin compression, rising AI costs, and execution risks. Bank of America downgraded the stock following the revised guidance.
First-quarter revenue slightly exceeded expectations despite the lowered profit outlook. Multiple law firms are now investigating Amplitude for potential securities law violations on behalf of investors.