William Blair analyst Ralph Schackart has maintained their bullish stance on DUOL stock, giving a Buy rating on November 4.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Ralph Schackart has given his Buy rating due to a combination of factors including Duolingo’s strategic focus on long-term user growth and innovative product initiatives. Despite a slight dip in daily active users compared to Street estimates, Duolingo is actively working to enhance user engagement by posting more frequent, edgier content. This, coupled with the launch of new products such as a chess feature, a flash card tool, and a GenAI Max video call feature, positions the company well for future growth.
Moreover, Duolingo is experiencing a positive shift towards higher-priced subscriptions, which has contributed to a notable increase in subscription revenue. The company’s commitment to leveraging AI for educational purposes and its focus on expanding its user base, even at the expense of short-term monetization, suggests a promising outlook. Additionally, Duolingo’s impressive third-quarter performance, with significant year-over-year growth in bookings and revenue, further supports the Buy rating, indicating strong potential for sustained growth.
In another report released on November 4, Evercore ISI also maintained a Buy rating on the stock with a $540.00 price target.