Can I buy Duolingo stock? Duolingo (NASDAQ: DUOL) is a great platform for users of all levels to practice and polish their speaking and understanding of a new language. Over 12 million Americans use Duolingo to learn English, Spanish, German, and French.
The number of free users and paid subscribers using the platform has steadily increased. Last quarter, Duolingo saw record activity with 83.1M monthly active users worldwide (up 47% YoY) and 5.8M paid subscribers (up 60% YoY).
The platform will continue expanding its language courses and offer new educational courses. Will it pay off and allow the edtech company to keep growing?
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Duolingo Stock (DUOL) Introduction
Duolingo’s language platform launched in November 2011, and over 10M users downloaded the app in its first 12 months. Only five language courses were available in 2o12, compared to more than 100 today. It quickly gained popularity because it was cheap and very accessible.
Teachers and students began using Duolingo as a complementary and free form of education. The ad version is free, while the premium version costs \$7 monthly. Users worldwide quickly made English the most popular language on the app, followed by Spanish and French.
The application’s model is simple and very user-friendly. Free members can view ads to unlock some features and boosters. After many daily mistakes, they can no longer participate in classes for a few hours. Premium members have access to unlimited classes and bonus features.
There is also a weekly leaderboard and challenges to encourage users to interact and compete with each other. Duolingo can issue a certification of completion once the course is completed. Can I trade Duolingo stock?
Duolingo Stock Exceeding Expectations
Since 2017, Duolingo’s annual revenue skyrocketed from $13M to $370M thanks to more active and paid users. The company surprised analysts in its last four quarterly reports by beating the expected EPS and revenue.
More recently, in November 2023, it reported an EPS of 0.60 (expected 0.37) and revenue of $137.62M (expected $132.74M). Thanks to those positive numbers, the sock climbed to an all-time high of \$203, and its market cap reached \$8.43B. As a result, Duolingo stock also exceeds expectations.
Duolingo Edtech
Duolingo is an educational technology stock. It wasn’t spared during the tech selloff period and lost more than 60% of its market value despite posting better-than-expected numbers.
However, investors couldn’t snub the stock forever. According to its CEO, the stock is up more than 180% YTD, and there might be even more room to grow.
In the following months, Duolingo plans to further develop its most popular language classes, such as English and Spanish. It is also looking at a measured approach to other educational classes.
Developers plan to incorporate music and math classes to leverage their existing user base. They plan to monetize these new classes, such as their language classes. For the moment, they don’t expect a substantial boost in revenue.
Instead, Duolingo aims to become a learning hub as it expands into new educational segments. All of this has helped Duolingo stock.
Duolingo Stock Partnerships
Duolingo is an educational technology stock. It wasn’t spared during the tech selloff period and lost more than 60% of its market value despite posting better-than-expected numbers.
However, investors couldn’t snub the stock forever. According to its CEO, the stock is up more than 180% YTD, and there might be even more room to grow.
In the following months, Duolingo plans to further develop its most popular language classes, such as English and Spanish. It is also looking at a measured approach to other educational classes.
Developers plan to incorporate music and math classes to leverage their existing user base. They plan to monetize these new classes, such as their language classes. For the moment, they don’t expect a substantial boost in revenue.
Instead, Duolingo aims to become a learning hub as it expands into new educational segments. All of this has helped Duolingo stock.
Duolingo Stock Competitors
Duolingo is an educational technology stock. It wasn’t spared during the tech selloff period and lost more than 60% of its market value despite posting better-than-expected numbers.
However, investors couldn’t snub the stock forever. According to its CEO, the stock is up more than 180% YTD, and there might be even more room to grow.
In the following months, Duolingo plans to further develop its most popular language classes, such as English and Spanish. It is also looking at a measured approach to other educational classes.
Developers plan to incorporate music and math classes to leverage their existing user base. They plan to monetize these new classes, such as their language classes. For the moment, they don’t expect a substantial boost in revenue.
Instead, Duolingo aims to become a learning hub as it expands into new educational segments. All of this has helped Duolingo stock.
1. Chegg (NYSE: CHGG)
Chegg is an American education technology company that provides a range of services to students, primarily focused on textbook rentals, online tutoring, and homework help. The company also offers a variety of study resources, including solutions to textbook problems, study guides, and expert Q&A sessions.
Tutoring help is also available for a wide range of subjects. Chegg’s platform is much more advanced than Duolingo and targets post-secondary studies. However, Chegg acquired Busuu in 2021 to strengthen its language learning platform and to compete with Duolingo.
Its stock market performance has been very poor in the last 12 months (-70%) as it had to lower guidance and released mixed earnings reports.
2. Udemy (NASDAQ: UDMY)
Udemy is an online learning platform that offers a wide range of courses across various subjects. It provides a marketplace where instructors can create and sell their courses to students globally.
Udemy courses cover diverse topics such as technology, business, finance, arts, personal development, and more. Like Duolingo, Udemy courses are self-paced, enabling students to learn conveniently. Once a course is purchased, students often have lifetime access to the content.
Since its IPO in 2021, Udemy’s stock market performance has been poor (-54% since IPO) despite a high retention rate and sales growth.
3. Babbel
Babbel is a language learning platform that offers courses in various languages and is designed to help users learn a new language through interactive lessons and exercises. The platform focuses on practical language skills and real-life conversations, aiming to make the learning process relevant and effective.
Babbel is not a public company, although it planned an IPO in 2021 but ultimately postponed it. This company is Duolingo’s closest competitor for language learning. Many students even prefer Babbel as it is more complex. If the company goes public, it could be a good investment opportunity.
Final Thoughts: Duolingo Stock
To conclude, Duolingo is a fun and interactive platform for learning a new language. Instead of scrolling for 30 minutes on social media, users can learn a new language. Duolingo is currently the leader in online language classes and is looking to expand its classes to math and music.
With the help of ChatGPT and numerous partnerships, it is attracting more users and growing quickly. Duolingo stock is trading at an all-time high and keeps exceeding expectations. There might be even more room to grow.
If you want to learn more about profiting from the stock market, head to our free library of educational courses. We have something for everyone.
Frequently Asked Questions
Per Tipranks, Duolingo stock is currently a moderate buy. It's highest price target is $282.
The intrinsic value of Duolingo stock is overvalued. However, price continues to rise.
Duolingo is the leader in language learning. Therefore, it continues to make a profit.
The active subscribers continue to grow. As a result, Duolingo has become more and more profitable. It was 2023's top performer with a 219% gain.
