Today was the first day of trading for Amplitude (NASDAQ:AMPL), a day which has gone quite well for this software company. Shares of AMPL stock shot to an intraday high of $54.90, more than 55% above the company’s IPO price of $35.
This move is certainly one that many investors may not have been surprised by. After all, this IPO came with great anticipation.
However, given today’s price action in growth stocks, this move is even more noteworthy. The Nasdaq closed down nearly 3%, as investors price higher bond yields into their models. For growth stocks, these higher yields are detrimental to valuations, as discounted cash flows further out become less valuable.
That said, Amplitude’s direct listing has gone off without a hitch. Direct listings are equity offerings in which no new shares are offered. Accordingly, existing investors are not diluted, but the company does not raise additional capital to fund growth. This is one way in which early investors can cash out, and allow early investors to get in on the action.
Here’s a few things investors may want to know about Amplitude as it starts trading.
What to Know About AMPL Stock
- AMPL stock opened at a reference IPO price of $35 today.
- However, shares shot more than 50% higher on an intraday basis as new investors piled in.
- Amplitude’s software offerings help to optimize customers’ digital footprints.
- Accordingly, in this era of digital optimization, investors appear to like Amplitude’s growth trajectory.
- The company posted revenue of $72.4 million during the first half of 2021.
- This represented revenue growth of approximately 57% year over year.
- While the company isn’t yet making money, investors seem to like the direction Amplitude is heading.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.