Latest news with #DUOL
Yahoo
3 days ago
- Business
- Yahoo
Should You Buy the Post-Earnings Surge in Duolingo Stock or Is It Too Late?
Duolingo (DUOL) shares soared as much as 35% on Thursday morning after reporting Q2 results that handily topped Street estimates and raising guidance for the full year. DUOL is being rewarded this morning also because it announced plans of acquiring NextBeat, a music gaming startup, for an undisclosed amount to broaden its app offerings. More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Duolingo stock has, however, reversed at least half of its intraday gain in recent hours and is now down more than 27% versus its year-to-date high of about $544 set in the second week of May. AI Is Serving as a Tailwind for Duolingo stock DUOL shares ripped higher today primarily because the company's earnings release confirmed AI isn't resulting in a growth slowdown as initially expected. In fact, the Nasdaq-listed firm has integrated artificial intelligence solutions into its online language learning platform, which are actually helping 'drive' user growth, according to Luis von Ahn, the company's chief executive. On Thursday, Duolingo guided for its revenue to grow by 36% on a year-over-year basis in 2025. This further confirms that Duolingo stock merits a place in growth-focused portfolios this year. Is Now the Right Time to Load Up on DUOL Shares? Despite a 37% AI-driven increase in paid subscribers to 10.9 million in Duolingo's second quarter, Wolfe Research continues to rate the mobile learning platform at 'Peer Perform' only. The investment firm is sticking with its cautious view on DUOL stock mostly because of valuation concerns. Duolingo shares are currently going for a forward price-earnings (P/E) multiple of nearly 118x, well above best-of-breed AI stocks like Nvidia (NVDA) that's currently trading at less than 45x only. Wall Street Remains Optimistic About Duolingo Other Wall Street analysts, however, are significantly more bullish on Duolingo stock for the back half of 2025. According to Barchart, the consensus rating on DUOL shares currently sits at 'Moderate Buy' and the mean target of about $480 indicates potential upside of nearly 19% from current levels. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
4 days ago
- Business
- Business Insider
Duolingo stock is surging after announcing it's making a lot more money from AI during earnings
Duolingo may be one of the Q2 earnings season's unexpected winners. The language learning platform reported its Q2 results on Wednesday, revealing significant revenue growth and record profitability, sending Duolingo stock soaring. Subscription revenue increased 46% and overall revenue rose by 41%. Duolingo also reported record net income and raised its full-year guidance, signaling high confidence in its future prospects. DUOL stock rose 30% in the first few hours of trading on Thursday, following the company's strong earnings report. The company also seems to be benefiting from its continued artificial intelligence integration. More specifically, the company's leaders have made clear that they have been able to integrate AI tools and features into more of their offerings at a lower cost than anticipated. This includes the conversational AI feature available in Max, Duolingo's top-tier subscription service. "We expanded gross margin by 130 basis points to 72.4% from Q1 to Q2, due to lower-than-expected AI costs and strength in our ads business," said CEO Luis von Ahn in his letter to shareholders. Von Ahn added that gross margin did fall 100 basis points year-over-year due to the higher AI costs that came with the Max expansion. It was less than the 300 basis points they had initially predicted. "We now expect FY 2025 gross margin to decline about 100 basis points year over year, which is an improvement from the guidance we provided last quarter," he noted, attributing this to lower AI costs and ad business strength. This comes just a few months after Duolingo came under fire when von Ahn announced plans to shift toward an AI-first business model, comments that he walked back shortly thereafter. As Duolingo stock has surged, it has caught the attention of retail traders, who seem optimistic about its growth prospects. Data from Stocktwits shows that retail sentiment towards it is "highly bullish" and that message volume is extremely high. Meanwhile, Duolingo stock is gaining traction on popular retail investor forums such as r/WallStreetbets. According to ApeWisdom, mentions of DUOL have surged 1,200% during the past 24 hours.
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Duolingo Second-Quarter Profit Up, Revenue Climbs on Rise in Bookings, Active Monthly Users
Duolingo DUOL 0.97%increase; green up pointing triangle posted higher revenue in the second quarter after the company saw a surge in total bookings and active monthly users. The mobile learning platform on Wednesday reported a profit of $44.8 million, or 91 cents a share, compared with $24.4 million, or 51 cents a share, last year.
Yahoo
5 days ago
- Business
- Yahoo
VNT vs. DUOL: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Technology Services sector might want to consider either Vontier Corporation (VNT) or Duolingo, Inc. (DUOL). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Right now, Vontier Corporation is sporting a Zacks Rank of #2 (Buy), while Duolingo, Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VNT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value. VNT currently has a forward P/E ratio of 12.82, while DUOL has a forward P/E of 117.01. We also note that VNT has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DUOL currently has a PEG ratio of 2.60. Another notable valuation metric for VNT is its P/B ratio of 4.9. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DUOL has a P/B of 17.22. Based on these metrics and many more, VNT holds a Value grade of B, while DUOL has a Value grade of F. VNT stands above DUOL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VNT is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vontier Corporation (VNT) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16-07-2025
- Business
- Yahoo
Duolingo Stock Posing Attractive Entry Points for Bulls
Shares of language learning platform Duolingo Inc (NASDAQ:DUOL) were last seen down 4.7% at $360.67, looking to extend their recent slide. 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 stock within striking distance of its 200-day moving average. More specifically, the stock is within 0.75 of the trendline's 20-day average true range (ATR) after spending at least 80% of the last 10 days and 80% of the last two months above it. Within these parameters, four other signals occurred in the past three years. DUOL was higher one month later three of those times, averaging a large 26.2% gain. A move of similar magnitude would put the shares back up at $455. Furthermore, short interest has been building amid the negative price action, and now represents 6.1% of the stock's available float, leaving some short squeeze potential in the event of a rebound. An unwinding of pessimism amongst options traders could provide tailwinds as well. DUOL's 50-day put/call volume ratio of 1.67 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 93% of readings from the past year. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
