Wells Fargo Initiates Duolingo (DUOL) with an Underweight Rating, $239 PT

Group 1 - Duolingo Inc. reported a strong performance with sales increasing to $252 million from $178 million year-over-year, and net income growing to $45 million from $24 million in the same period [2] - The company achieved an EPS of $0.91, exceeding the expected $0.55 [2] - Duolingo's Co-Founder and CEO emphasized record profitability and strong top-line growth, leading to an increase in full-year guidance [3] Group 2 - Wells Fargo initiated coverage of Duolingo with an Underweight rating and a price target of $239, citing concerns over user growth issues and downside risk in 2027 estimates [1][3] - Duolingo is investing in its core business and new areas like Chess, Math, and Music, which are expected to drive long-term growth [3] - The company operates as a mobile learning platform offering courses in 40 different languages through its app [4]