Digital analytics platform Amplitude, Inc. (NASDAQ: AMPL) is now the subject of securities fraud investigations launched by several shareholder rights law firms. This action follows the company's release of its first-quarter results in early May, which included a significant reduction to its full-year profit outlook, causing its stock price to plummet over 21% in a single day. Firms including The Schall Law Firm and Pomerantz LLP have commenced investigations.

The catalyst for these probes was Amplitude's first-quarter earnings report and updated annual forecast, issued on May 6, 2026. While the report showed quarterly revenue of $93.49 million, a 17% year-over-year increase that surpassed market expectations of $92.95 million, the market reacted sharply to the company's concurrent downward revision of its full-year profit guidance.

Specifically, the company slashed its fiscal year 2026 non-GAAP operating profit guidance to a range of $2.5 million to $6.5 million, down significantly from its prior forecast of $7 million to $13 million. Analysts widely interpreted this reduction as a signal of margin compression, expressing concerns over the company's partnership strategy and rising costs associated with artificial intelligence. Bank of America subsequently downgraded the stock, citing increased execution risk and a weaker earnings outlook.

As a result of this news, Amplitude's stock price tumbled $1.61, or 21.41%, to close at $5.91 on May 7. By early June, the share price was still hovering near its 52-week low of $5.51, having declined approximately 31.4% year-to-date, significantly underperforming the S&P 500 index over the same period.

The investigations by The Schall Law Firm and Pomerantz LLP are currently ongoing, with no formal legal complaints having been filed at this stage. The firms are encouraging investors who purchased Amplitude shares between April 18, 2024, and May 6, 2026, and incurred losses, to contact them.