Shares of language learning platform Duolingo Inc (NASDAQ:DUOL) were last seen down 4.7% at $360.67, looking to extend their recent slide. The security marked its eighth-straight weekly loss this past Friday, moving sharply away from its May 14 record high of $544.93, though its still sporting an 11% year-to-date lead. For those looking to buy in on the dip, DUOL is currently flashing a historically bullish signal. Per Schaeffer's Senior Quantitative Analyst Rocky White, the recent pullback has Duolingo sto ...

Core Insights - Duolingo, Inc. will announce its second quarter results for the period ending June 30, 2025, on August 6, 2025, after the U.S. market closes [1] - A live video webcast of the earnings announcement will be available to the public on Duolingo's Investor Relations website [2] - Duolingo is recognized as the leading mobile learning platform globally, with its app being the most popular for language learning and the top-grossing app in the Education category on major app stores [3] Company Overview - Duolingo's flagship app has gained significant popularity, becoming the preferred choice for language learners worldwide [3] - The company emphasizes technology in its operations, aiming to provide an engaging and effective learning experience [3] - Duolingo is committed to its mission of delivering the best education globally and making it universally accessible [3]

Duolingo (DUOL 1.17%) operates the world's most popular digital language education platform, and the company continues to deliver stellar financial results. Duolingo is elevating the learning experience with artificial intelligence (AI), which is also unlocking new revenue streams that could fuel its next phase of growth.Duolingo stock set a new record high in May, but it has since declined by 26%. It's trading at a sky-high valuation, so investors might be wondering whether the company's rapid growth warra ...

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience analyzing companies in tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - The Investing Group Deep Value Returns, led by Michael, offers insights through its concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The group provides "hand-holding" support for both new and experienced investors, fostering an active and kind community accessible via chat [3]

Investment Rating - The industry investment rating is "Strongly Outperform the Market," indicating an expected industry index increase of over 5% in the next six months [32]. Core Insights - Oracle announced a $30 billion order and plans to expand data centers in the U.S., with multi-cloud database revenue growing at over 100% [4][7]. - CoreWeave received the first batch of NVIDIA GB300 servers, significantly enhancing AI processing capabilities and efficiency [8]. - Figma is preparing for a major IPO, projecting $749 million in revenue for 2024, with a focus on integrating AI into its design platform [9][13]. - The AI sector is experiencing a new technology cycle driven by increased computational power, model iteration, and accelerated commercialization [4]. - ByteDance's Doubao launched a new "In-Depth Research" feature, enhancing its AI capabilities for complex task processing [22][26]. Summary by Sections Oracle - Oracle's CEO stated a strong start to FY26, with multi-cloud database revenue growing over 100% and a significant contract with OpenAI expected to contribute over $30 billion annually starting FY28 [4][7]. CoreWeave - CoreWeave announced the receipt of NVIDIA's latest GB300 servers, which enhance AI model output efficiency by up to 50 times, marking a significant advancement in AI cloud services [8]. Figma - Figma aims for a $1.5 billion IPO, with 2024 revenue projected at $749 million, reflecting a 48% year-over-year growth. The platform is embedding AI to improve design efficiency [9][13]. AI Dynamics - The AI industry is witnessing a robust cycle characterized by high demand for computational power and rapid advancements in AI applications, with major companies like Oracle and CoreWeave leading the charge [4]. ByteDance - ByteDance's Doubao introduced the "In-Depth Research" feature, which allows users to process complex tasks and generate structured reports, indicating a shift towards deeper AI application capabilities [22][26].

Industry Overview - The technology services industry is mature, with demand for services in good shape, and revenues, income, and cash flows are expected to gradually return to pre-pandemic levels, enabling stable dividends for most players [1] - The global shift toward digitization is creating opportunities in markets such as 5G, blockchain, and AI, with companies adopting generative AI, machine learning, and data science to gain competitive advantages [4] - The business software industry is benefiting from strong demand for multi-cloud-enabled software solutions as companies transition from legacy platforms to modern cloud-based infrastructure [4] Company Highlights AppLovin Corp. (APP) - AppLovin is a software-based platform for mobile app developers, enhancing marketing and monetization of apps [6] - The introduction of AI-powered AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth [7] - AppLovin's expected revenue and earnings growth rates for the current year are 16% and 84.8%, respectively, with a Zacks Consensus Estimate for current-year earnings improving by 0.1% in the last seven days [8] - The average short-term price target for AppLovin shares indicates a potential increase of 37% from the last closing price of $341.64, with a maximum upside of 90.3% [8] Duolingo Inc. (DUOL) - Duolingo operates as a mobile learning platform offering courses in 40 different languages and provides a digital language proficiency assessment exam [10] - The company utilizes AI applications to personalize and automate the learning process, with tools like Birdbrain analyzing real-time user performance [11] - Duolingo's expected revenue and earnings growth rates for the current year are 33.5% and 54.3%, respectively, with the Zacks Consensus Estimate for current-year earnings improving by 2.1% over the last 60 days [12] - The average short-term price target for Duolingo shares indicates a potential increase of 24% from the last closing price of $391.86, with a maximum upside of 53.1% [12]

Core Insights - Duolingo has achieved a remarkable valuation with a P/E ratio of 200 and a market capitalization of $18.7 billion, raising questions about whether this is a capital bubble or a rational market choice [1] Group 1: Company Overview - Duolingo was founded in 2009, with its app launched in 2012 by Luis von Ahn, a professor at Carnegie Mellon University, and his student Severin Hacker [3] - The company initially gained funding due to the founders' reputation rather than the online language education model itself, with significant backing from Google in later funding rounds [4][5] - The app's unique gamified learning approach has been a key factor in its user engagement and retention [7][9] Group 2: Business Model - Duolingo operates on a "free + ad + premium" model, offering free courses with ads and optional paid subscriptions for an ad-free experience and additional features [14][15] - The subscription products include Super Duolingo and Duolingo Max, with prices ranging from $12.99/month to $29.99/month for advanced features [15] - The company reported a significant increase in user engagement, with DAU at 46.6 million and MAU at 130.2 million, reflecting a 49% and 33% year-over-year growth, respectively [16] Group 3: Financial Performance - Duolingo's Q1 2025 financial results showed a net profit of $35.1 million, a 30% increase from the previous year, and an adjusted EBITDA of $62.8 million, up 43% [16][20] - The company has maintained a compound annual growth rate (CAGR) of 34% in user growth and over 58% in subscription revenue from 2019 to 2024 [16] Group 4: Market Position and Growth Potential - The global language learning market is projected to be valued between $61.7 billion and $97.8 billion by 2024, indicating significant growth potential for Duolingo [27] - Duolingo's user acquisition strategy has been effective, with a low marketing expense ratio of 13%, leading to a snowball effect in user growth [23] Group 5: Competitive Landscape and Challenges - Despite its success, Duolingo faces challenges in providing comprehensive language learning resources, particularly for less common languages [29][30] - Competitors like Speak and Grammarly are leveraging AI technology to enhance their offerings, posing a threat to Duolingo's market share [32][33] - The company's reliance on a single app for growth may limit its long-term scalability unless it diversifies its offerings [21][24]

Core Viewpoint - Recent legal challenges for Apple Inc. regarding alleged monopolistic practices and new App Store fee policies may positively impact subscription service companies like Duolingo, Match Group, and Bumble by reducing app store fees, which are a significant cost of revenue [1][2]. Financial Outlook - A reduction in app store fees could enhance earnings for Duolingo, Match Group, and Bumble, as these fees currently account for 17% of Duolingo's cost of revenues and 20% for both Match Group and Bumble [2][3]. - A 500 basis-point shift in subscription revenue to off-app payments could increase Duolingo's EBITDA by 3.3%, Match's by 2.8%, and Bumble's by 3.0%. Additionally, a 100 basis-point reduction in app store fees could raise their EBITDA by 3.2%, 2.7%, and 3.5%, respectively [4]. Price Forecast Adjustments - Price forecasts have been raised for Bumble to $5.50 from $5.25 and for Match Group to $34 from $32, while Duolingo's price forecast remains at $450 due to higher sector valuation [5]. Revenue Impact - The anticipated fee reduction is expected to result in a 1-2% increase in U.S.-based revenues for these companies, while the impact on EU-based revenues is estimated to be smaller, leading to only a 0.5% EBITDA increase [6]. Company-Specific Insights - Bumble is projected to benefit the most from a potential drop in U.S. app fees, supported by recent legal developments that allow developers to direct users to off-app payment options [7]. - Bumble, Duolingo, and Match are already testing off-app payments, with expectations for updates during the second-quarter earnings in August. A 500 basis-point shift to off-app payments and a 100 basis-point cut in U.S. app fees could boost Bumble's total EBITDA by 1.7% [8]. - Duolingo, Match, and Bumble derive only about 20% of their subscription revenue from the EU, limiting their earnings upside from EU app fee reductions due to DMA compliance [9].

Core Insights - Vontier Corporation (VNT) and Duolingo, Inc. (DUOL) are both currently rated with a Zacks Rank of 2 (Buy), indicating positive earnings outlooks for both companies [3] - Value investors utilize various metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - VNT has a forward P/E ratio of 12.25, significantly lower than DUOL's forward P/E of 138.78, suggesting VNT is more attractively priced [5] - The PEG ratio for VNT is 1.31, while DUOL's PEG ratio stands at 3.09, indicating VNT's expected earnings growth is more favorable [5] - VNT's P/B ratio is 5.01 compared to DUOL's P/B of 20.48, further supporting VNT's stronger valuation metrics [6] - Based on these valuation figures, VNT is rated with a Value grade of A, while DUOL has a Value grade of F, highlighting VNT as the superior value option [6]

The shares of language learning platform Duolingo Inc (NASDAQ:DUOL) are down 2.7% at $411.54 at last glance, looking to extend their recent slide. The stock hung around its May 14 record high of $544.93 for a few weeks before beginning a sharp descent lower, marking only three positive days since June 6.On the side of the bulls, however, DUOL is still up 26.9% in 2025, and currently flashing a historically bullish signal. Per Schaeffer's Senior Quantitative Analyst Rocky White, the recent pullback has Duoli ...