Needham analyst Ryan MacDonald has reiterated their bullish stance on DUOL stock, giving a Buy rating today.
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Ryan MacDonald has given his Buy rating due to a combination of factors that highlight both short-term and long-term potential for Duolingo. Despite a reduction in the price target to $300, MacDonald sees the current market conditions as a unique opportunity for investors. The recent decline in stock price, following management’s focus on long-term investments, is viewed as a temporary setback that has created an attractive entry point for buyers.
In the short term, MacDonald anticipates that Duolingo’s marketing strategies, including the return of engaging content and seasonal campaigns, will drive growth in daily and monthly active users. Looking further ahead, he expects initiatives aimed at increasing subscriber numbers, particularly in higher-priced tiers, to contribute positively to the company’s financial performance. This combination of immediate user growth and longer-term revenue potential underpins MacDonald’s optimistic outlook on Duolingo’s stock.