This uncertain stock market has gotten very good at dashing investor hopes this earnings season. Many stocks have reacted to earnings reports with volatility; some names have soared 20% or more, while others have been severely punished. In some cases, the reasoning behind the large swings is unclear.
Digital optimization company Amplitude (NASDAQ: AMPL) is among the stocks that were punished this quarter. The company just reported its second quarter of earnings since going public late in 2021, and investors sent the price down almost 60% in a single day. Investors should always explore the potential causes for a significant stock move like this.
Here is why Amplitude could have dropped, and why the stock's long-term story could still be promising.
Source Fool.com