.png)
Is AI Duolingo's Biggest Risk or Biggest Catalyst?
Gamified mobile learning company Duolingo (NASDAQ: DUOL) has been a market-crushing investment. The stock closed its first day of trading in 2021 at $139 per share. As of this writing, just four years later, it's trading at over $520 per share, up 276% and trading near an all-time high. For perspective, the S&P 500 is up just 34% during this time.Duolingo is outrunning the market for at least two simple reasons. First, it's growing like a weed. Second, it's actually quite a profitable business. The end result is that skyrocketing profits are lifting the stock to higher and higher levels.The chart below shows that Duolingo's revenue is up more than its stock price. And its trailing-12-month free cash flow of $289 million is astronomically higher than when it went public.Continue reading
Gamified mobile learning company Duolingo (NASDAQ: DUOL) has been a market-crushing investment. The stock closed its first day of trading in 2021 at $139 per share. As of this writing, just four years later, it's trading at over $520 per share, up 276% and trading near an all-time high. For perspective, the S&P 500 is up just 34% during this time.
Duolingo is outrunning the market for at least two simple reasons. First, it's growing like a weed. Second, it's actually quite a profitable business. The end result is that skyrocketing profits are lifting the stock to higher and higher levels.
The chart below shows that Duolingo's revenue is up more than its stock price. And its trailing-12-month free cash flow of $289 million is astronomically higher than when it went public.
