Duolingo is rated a Strong Buy after a 65% decline, with market overreaction to user growth and AI fears creating a mispricing opportunity. DUOL's data monopoly, high engagement, and expansion into non-language verticals position it for durable growth despite short-term volatility and AI-driven course quality concerns. Management's shift to prioritizing long-term user growth and ROI aligns with...
Duolingo (DUOL) is down nearly 40% YTD, yet I remain extremely bullish and continue adding to my position. DUOL's financials are robust: 50.5M DAUs (+36% YoY), 11.5M paid subscribers (+34%), and over $1B in cash, with no long-term debt. The company's strategic shift prioritizes long-term user growth and teaching quality over near-term monetization, despite decelerating DAU growth.
Duolingo delivers exceptional profitability with a 71.99% gross margin and 40.03% net income margin, far outperforming sector averages. Strong free-cash-flow generation, including a 28.17% FCF margin and $363.89M in operating cash, supports long-term product expansion. Revenue growth of 39.86% alongside high margins creates a rare Rule-of-40 profile that strengthens the bullish outlook.
Duolingo is now rated a 'Buy', as valuation has corrected sharply, while fundamentals remain robust. DUOL achieved 50 million DAUs and $271 million in quarterly revenue, demonstrating strong topline growth and operational leverage. A current P/E of 18x and a P/OCF below 30x reflect deep value vs. historical averages, despite ongoing rapid growth.
Duolingo has experienced a sharp valuation reset, dropping nearly 40% post-Q3 earnings, and now trades at a fraction of its highs. I upgrade DUOL to a "Buy," citing its unique business model, strong user retention, and expanded course opportunities beyond core language offerings. DUOL's Q4 bookings guidance implies a deceleration to 22% y/y growth, as the company prioritizes lesson quality and ...
Challenge yourself in the limited-time Genshin Impact x Duolingo 3-Day Streak Quest in the Duolingo app — accompanied by Teyvat's best guide! Challenge yourself in the limited-time Genshin Impact x Duolingo 3-Day Streak Quest in the Duolingo app — accompanied by Teyvat's best guide!
Duolingo attracts new users and turns them into paying subscribers at an impressive rate. This business could expand into many educational opportunities, potentially providing years of growth runway.
Duolingo's 66% price drop from May highs creates a rare entry point. Costco's 92% to 93% membership renewal rate proves customers will literally pay for the privilege of shopping there.
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