What Happened?
A number of stocks fell in the afternoon session after reports revealed the Trump administration is considering new restrictions on software exports to China.
The news amplified investor anxiety surrounding US-China trade relations, triggering a broad sell-off in the technology sector. According to reports, the administration is weighing these limitations as a potential response to China's own trade measures. The uncertainty rattled the market, contributing to declines in major indexes like the S&P 500 and Nasdaq. Proposed export controls of this nature could significantly disrupt the global technology trade, impacting companies that rely on the Chinese market. The move adds to existing macro challenges, creating a cautious outlook among investors for the software industry.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Content Delivery company Fastly (NYSE:FSLY) fell 2.4%. Is now the time to buy Fastly? Access our full analysis report here, it’s free for active Edge members.
- Developer Operations company JFrog (NASDAQ:FROG) fell 2.1%. Is now the time to buy JFrog? Access our full analysis report here, it’s free for active Edge members.
- Data Storage company Snowflake (NYSE:SNOW) fell 2.6%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free for active Edge members.
- Data Storage company DigitalOcean (NYSE:DOCN) fell 1.3%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free for active Edge members.
- Data Analytics company Amplitude (NASDAQ:AMPL) fell 2.6%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Amplitude (AMPL)
Amplitude’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 4.1% on the news that President Donald Trump threatened to impose 'massive' tariffs on Chinese products, reigniting trade war fears. In a social media post, Trump stated the move was a potential countermeasure to China 'becoming very hostile,' following Beijing's announcement of new export controls on rare-earth minerals. These minerals are critical components for magnets used across the automotive, electronics, and defense industries. The unexpected development jolted Wall Street, which had been trending higher. The news sent all major indices into negative territory, with the tech-rich Nasdaq Composite falling 1.7%, the S&P 500 dropping 1.3%, and the Dow Jones Industrial Average declining by 0.9%.
Amplitude is down 7.7% since the beginning of the year, and at $9.88 per share, it is trading 31.6% below its 52-week high of $14.44 from February 2025. Investors who bought $1,000 worth of Amplitude’s shares at the IPO in September 2021 would now be looking at an investment worth $180.20.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
