Small-Cap Tech Stocks Overview - Small-cap stocks, with market caps between 250millionand2 billion, can offer significant growth potential and outsized returns [1] - Three small-cap tech stocks worth considering are Innodata, Amplitude, and SoundHound AI [1] Innodata (INOD) - Innodata, a low-code software platform company, leverages generative AI to automate processes and train models, freeing workers for other tasks [2] - The company has secured master service agreements with five of the Magnificent Seven companies, a notable achievement for a firm with a 470millionmarketcap[2]−Revenueforthefirsthalfof2024rose5459 million, with a net income of 975,000comparedtoa2.9 million loss in the same period in 2023 [3] - The stock price has surged over 90% year-to-date and more than 1,000% over the last five years [3] - The forward P/E ratio is 35, considered low given the company's revenue growth [3] Amplitude (AMPL) - Amplitude, with a 1billionmarketcap,providesadvanceddataanalyticssoftwaretotrackcustomerbehaviorandimproveproductmarketing[5]−Revenuegrowthslowedpost−2022duetocustomeroverinvestmentduringlow−interestratesandcontractrenewalsatloweramounts[6]−Managementexpectsgrowthtoreaccelerate,withpotentialbottominginQ32024afterterminatingcontractswithRussiancustomers[6]−Thecompanyisfreecashflowpositive,holds3013.5 million, with trailing 12-month revenue at 55.5million,upfrom46 million a year ago [10] - The company has a strong balance sheet with 200millionincashandonly4 million in debt, though it is not yet profitable or free cash flow positive [10]
Amplitude(AMPL) The Motley Fool·2024-10-13 12:00