2024-05-10 09:20:54 ET
Summary
- Duolingo's stock tumbled nearly 20% after beating earnings expectations, erasing year-to-date gains.
- The company's expensive valuation (at ~10x current-year revenue) remains a risk, but a further drop in stock price may present a buying opportunity.
- Duolingo's plans to roll out Duolingo Max more broadly may help to bolster paid user growth, which is already growing at a 50%+ clip.
Duolingo ( DUOL ), the language learning app used by more than 20 million daily users, is proof that the current earnings cycle is incredibly volatile. Despite a “beat and raise” quarter that beat expectations on the top and bottom line while also raising bookings and profit expectations for the year, Duolingo had one of its biggest one-day tumbles on record, falling nearly 20% post-earnings....
Read the full article on Seeking Alpha
For further details see:
Duolingo: The Post-Earnings Crash Makes This Stock More Appealing