William Blair analyst Ralph Schackart has maintained their bullish stance on DUOL stock, giving a Buy rating on August 5.
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Ralph Schackart has given his Buy rating due to a combination of factors that highlight Duolingo’s promising growth trajectory. The company has successfully navigated a social media challenge by adjusting its content strategy, which improved its public sentiment. Additionally, the introduction of a new chess course has been met with rapid adoption, surpassing the growth of previous subjects and attracting over a million daily active users. This expansion into chess is seen as a way to engage new audiences and enhance the experience for current users.
Furthermore, Duolingo’s strategic acquisition of a music-focused team indicates its commitment to broadening its educational offerings. The company’s subscription services, particularly the Super and Max tiers, are performing well, with the latter showing increased subscriber numbers despite slightly slower growth than anticipated. The introduction of new features, such as video calls and the ‘energy’ feature, is also contributing to higher user engagement and conversion rates, reinforcing the company’s positive outlook.
In another report released on August 5, Scotiabank also maintained a Buy rating on the stock with a $600.00 price target.