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Duolingo has strong fundamentals with impressive revenue growth and profitability, but its valuation is relatively high. The company offers over 100 language courses and is focused on making learning personalized, fun, and accessible. Despite strong financial performance, market volatility and high valuation multiples make it advisable to hold off on buying Duolingo stock at this time.
Duolingo's stock experienced a 42% decline from its peak value but presents a buying opportunity amidst market uncertainty. DUOL's competitive advantage lies in its efficient learning process and academic recognition, making it a strong player in the language learning field. Duolingo's premium revenue per user and margins are competitive with those of other successful subscription services like Netflix and Spotify.
Duolingo reported its Q1 FY24 earnings in May, where revenue and Adjusted EBITDA grew 45% and 190% YoY respectively, as it continued to attract, engage and convert users to Paid Subscribers. Since then, OpenAI has launched ChatGPT 4-o, which can engage users in conversational practice, provide instant feedback and more, threatening Duolingo's market share. The company is due to report its Q2 FY24 earnings on August 7th, where revenue and Adjusted EBITDA are expected to grow 38% and 82% YoY, respectively.
Beyond analysts' top -and-bottom-line estimates for Duolingo (DUOL), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2024.
Duolingo (DUOL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Despite recent stock declines, Duolingo continues to show robust revenue growth and user engagement.
Duolingo, Inc. (DUOL) closed at $169.92 in the latest trading session, marking a -1.94% move from the prior day.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Duolingo operates the world's top-grossing education application for smartphones. Bank of America upgraded Duolingo stock to a buy on Friday, July 26.
Duolingo is a leading e-learning platform with 97 million monthly active users and a freemium model that generates revenue from subscriptions, advertising, and in-app purchases. The company is expanding into new verticals such as literacy, math, and music courses, leveraging generative AI enhancements to drive user engagement and retention. DUOL's user base has grown significantly, with MAUs and DAUs increasing at impressive rates since 2019.