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Analyst Says Buy Struggling Duolingo Stock
DUOLDuolingo(DUOL) Schaeffers Investment Research·2025-03-18 14:08

Group 1 - Duolingo Inc's stock has increased by 0.8% to 296.39followinganupgradefromJMPSecuritiesto"outperform"from"marketperform,"citingpotentialgrowthinDuolingoMaxsubscriptionsasakeydriverforfuturegainsandanattractivevaluationasabullishcatalyst[1]Thestockisfacingresistanceatthe296.39 following an upgrade from JMP Securities to "outperform" from "market perform," citing potential growth in Duolingo Max subscriptions as a key driver for future gains and an attractive valuation as a bullish catalyst [1] - The stock is facing resistance at the 300 level after a significant 17% pullback post-earnings in late February, and it has declined by 9.3% since the beginning of 2025 [2] - Currently, nine out of 17 brokerages have rated the stock as a "hold," indicating potential for further upgrades, while options traders show bullish sentiment reflected in a low put/call open interest ratio of 0.58 [3] Group 2 - Options trading is considered an appealing strategy for betting on Duolingo's stock, as it has historically outperformed volatility expectations, with a Schaeffer's Volatility Scorecard rating of 83 out of 100 [4]