Artur Duolingo, Inc. (NASDAQ:DUOL) has an interesting profile from a fundamentals perspective. On the one hand, it's a Top 10 performer in the Education Services sector within the broader Consumer Discretionary industry on the basis of its net income margin, and it's #1 in terms of revenue growth on a 3Y basis; but, on the other hand, its valuation seems to have run away from its fundamentals by a mile. In other words, that kind of performance is excellent, of course, but does it really justify a 9x forward ...

Hinterhaus Productions/DigitalVision via Getty Images Investment Thesis Last year, Duolingo's (NASDAQ:DUOL) stock outperformed the market and had a decent run. However, it has recently had a slight decline, falling 42% from its peak of $251. Stock performance (Seeking Alpha) Not-so-good news has been hitting the market lately. The unexpected increase in U.S. unemployment, the Bank of Japan's sudden boost in interest rates, and even Warren Buffett's sale of some Apple shares have all caused investors to get ...

stockcam Introduction & Investment Thesis Duolingo (NASDAQ:NASDAQ:DUOL) is a language learning app that expanded its offerings to Maths and Music in FY23. The company has been underperforming the S&P 500 and Nasdaq 100 YTD. I had last covered the stock on May 10 after its Q1 FY24 earnings report, where I held my "buy" rating as I believed that the stock offered an attractive entry point after it beat estimates for revenue and earnings growth. Unfortunately, since then, the stock has declined over 12%, under ...

Wall Street analysts forecast that Duolingo, Inc. (DUOL) will report quarterly earnings of $0.33 per share in its upcoming release, pointing to a year-over-year increase of 312.5%. It is anticipated that revenues will amount to $176.88 million, exhibiting an increase of 39.5% compared to the year-ago quarter. The consensus EPS estimate for the quarter has undergone an upward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have re ...

Core Viewpoint - Duolingo is facing challenges from AI tools and a decline in user engagement, but its financial performance and growth strategies suggest potential for recovery and investment opportunities [1][9][14]. User Engagement and Financial Performance - Duolingo has 97.6 million monthly active users (MAUs), with 31.4 million daily active users (DAUs), and management expects DAU growth to return to near 60% next quarter [2][5]. - The company has improved its earnings per share from a loss of $1.24 to an estimated profit of $0.97 since its IPO in July 2021, indicating a successful freemium model and increased user engagement [3][12]. - Revenue rose by 45% to $168 million, with a 47% increase in bookings and a doubling of operating margin, although there was concern over the slowdown in MAU and DAU growth [14][15]. Strategic Initiatives - Duolingo is optimizing its subscription tiers, including family plans and Duolingo Max, to enhance user engagement through gamification [5][20]. - The company is expanding its offerings beyond language learning, with new cohorts in music and math, which are expected to attract a broader user base and create significant growth opportunities [18][20]. Competitive Landscape - Other competitors like Rosetta Stone and Babbel may adopt ad-supported models similar to Duolingo, indicating a shift in the industry [4]. - Duolingo's use of AI for content generation is seen as a competitive advantage over platforms like Udemy, which operates as a marketplace for course creators [23]. Future Outlook - Analysts project a 36% annual revenue growth for Duolingo over the next five years, with a potential price target of around $257, suggesting a growth rate of 48% from the current share price [19]. - The company is expected to leverage AI to reduce costs and enhance course creation efficiency, positioning itself favorably in the long term despite potential risks from AI advancements [20][24].

Analysts and investors alike will be keeping a close eye on the performance of Duolingo, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on August 7, 2024. The company's upcoming EPS is projected at $0.33, signifying a 312.5% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $176.88 million, indicating a 39.45% growth compared to the corresponding quarter of the prior year. Our r ...

In the past year, the Zacks Defined Business Services sector has provided a double-digit return of 12.6% and the Technology Services industry has rallied an impressive 37.8%. The industry players are incorporating artificial intelligence and tools like machine learning in their applications to make the same more dynamic and result-oriented. Elevated demand for enterprise software, which is ramping up productivity and improving the decision-making process, is a key catalyst. We have narrowed our search to fi ...

After tumbling from a peak it set in May, shares of Duolingo (DUOL 2.95%) recently received a positive bump from a Wall Street investment bank that follows its business closely. Nagle also maintained Bank of America's $245-per-share price target on Duolingo stock. This target is significantly lower than several other investment banks but it still implies a gain of about 40% from recent prices. Why Duolingo is a good stock to buy Duolingo's free-to-use smartphone application is gaining popularity at an eye-p ...

Duolingo, Inc. (DUOL) has been beaten down lately with too much selling pressure. While the stock has lost 19.7% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator ...

Regardless of the negative news swirling about the market right now, some sleeper stocks continue to rally and reach new highs. But while it's easy to chase momentum, that approach has a few risks. Soaring stocks can be humbled during sharp market corrections, and a quick ascent leaves a corporation more vulnerable to a bad earnings report. Investors saw this scenario play out after the pandemic. Many stocks that soared in 2020 and 2021 proceeded to crash in 2022. Some of the stocks that fell hard in 2022 r ...