Is Duolingo Stock a Good Investment?
Duolingo Investment Advice | DUOL |
- Examine Duolingo's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Duolingo's leadership team and their track record. Good management can help Duolingo navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Consumer Services space and any emerging trends that could impact Duolingo's business and its evolving consumer preferences.
- Compare Duolingo's performance and market position to its competitors. Analyze how Duolingo is positioned in terms of product offerings, innovation, and market share.
- Check if Duolingo pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Duolingo's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Duolingo stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Duolingo is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Strong | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Duolingo Stock
Researching Duolingo's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 96.0% of the company shares are held by institutions such as insurance companies. The company had not issued any dividends in recent years.
To determine if Duolingo is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Duolingo's research are outlined below:
| Duolingo has a strong financial position based on the latest SEC filings | |
| Over 96.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Duolingo Inc Shares Up 4.28 percent on Nov 19 |
Duolingo Quarterly Gross Profit |
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Duolingo uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Duolingo. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Duolingo's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Duolingo's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Duolingo's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-02-28 | 2023-12-31 | 0.17 | 0.26 | 0.09 | 52 | ||
2022-11-10 | 2022-09-30 | -0.55 | -0.46 | 0.09 | 16 | ||
2022-08-04 | 2022-06-30 | -0.52 | -0.38 | 0.14 | 26 | ||
2024-11-07 | 2024-09-30 | 0.935 | 1.078 | 0.143 | 15 | ||
2023-11-08 | 2023-09-30 | -0.11 | 0.06 | 0.17 | 154 | ||
2023-05-09 | 2023-03-31 | -0.23 | -0.06 | 0.17 | 73 | ||
2023-02-28 | 2022-12-31 | -0.53 | -0.35 | 0.18 | 33 | ||
2024-08-07 | 2024-06-30 | 0.32 | 0.51 | 0.19 | 59 |
Know Duolingo's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Duolingo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Duolingo backward and forwards among themselves. Duolingo's institutional investor refers to the entity that pools money to purchase Duolingo's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 692.4 K | Foxhaven Asset Management, Lp | 2024-09-30 | 687.1 K | Geode Capital Management, Llc | 2024-09-30 | 672.8 K | American Century Companies Inc | 2024-09-30 | 501.2 K | T. Rowe Price Associates, Inc. | 2024-06-30 | 499.7 K | Norges Bank | 2024-06-30 | 397.6 K | Bank Of New York Mellon Corp | 2024-06-30 | 395.1 K | Renaissance Technologies Corp | 2024-09-30 | 387.1 K | Agf Management Ltd | 2024-06-30 | 355.8 K | Blackrock Inc | 2024-06-30 | 3.5 M | Vanguard Group Inc | 2024-09-30 | 3.5 M |
Duolingo's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 15.48 B.Market Cap |
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Duolingo's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | (0.02) | (0.02) | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.02 | 0.04 |
Determining Duolingo's profitability involves analyzing its financial statements and using various financial metrics to determine if Duolingo is a good buy. For example, gross profit margin measures Duolingo's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Duolingo's profitability and make more informed investment decisions.
Evaluate Duolingo's management efficiency
Duolingo has return on total asset (ROA) of 0.0325 % which means that it generated a profit of $0.0325 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1208 %, meaning that it created $0.1208 on every $100 dollars invested by stockholders. Duolingo's management efficiency ratios could be used to measure how well Duolingo manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Duolingo's Return On Tangible Assets are quite stable compared to the past year. Return On Assets is expected to rise to 0.02 this year, although the value of Return On Capital Employed will most likely fall to (0.02). At this time, Duolingo's Return On Assets are quite stable compared to the past year. Asset Turnover is expected to rise to 0.68 this year, although the value of Non Current Assets Total will most likely fall to about 42.3 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 14.09 | 14.79 | |
| Tangible Book Value Per Share | 13.66 | 14.34 | |
| Enterprise Value Over EBITDA | -1.7 K | -1.6 K | |
| Price Book Value Ratio | 16.10 | 16.90 | |
| Enterprise Value Multiple | -1.7 K | -1.6 K | |
| Price Fair Value | 16.10 | 16.90 | |
| Enterprise Value | 5.6 B | 5.4 B |
The management team at Duolingo has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 0.787 |
Basic technical analysis of Duolingo Stock
As of the 25th of November, Duolingo shows the Downside Deviation of 1.7, mean deviation of 1.88, and Coefficient Of Variation of 279.24. Duolingo technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Duolingo coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Duolingo is priced favorably, providing market reflects its regular price of 351.97 per share. Given that Duolingo has jensen alpha of 0.6617, we urge you to verify Duolingo's prevailing market performance to make sure the company can sustain itself at a future point.Duolingo's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Duolingo insiders, such as employees or executives, is commonly permitted as long as it does not rely on Duolingo's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Duolingo insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Duolingo's Outstanding Corporate Bonds
Duolingo issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Duolingo uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Duolingo bonds can be classified according to their maturity, which is the date when Duolingo has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| International Game Technology Corp BondUS460599AD57 | View |
Understand Duolingo's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Duolingo's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2813 | |||
| Market Risk Adjusted Performance | 0.6665 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 1.15 | |||
| Downside Deviation | 1.7 | |||
| Coefficient Of Variation | 279.24 | |||
| Standard Deviation | 2.29 | |||
| Variance | 5.25 | |||
| Information Ratio | 0.3011 | |||
| Jensen Alpha | 0.6617 | |||
| Total Risk Alpha | 0.4499 | |||
| Sortino Ratio | 0.406 | |||
| Treynor Ratio | 0.6565 | |||
| Maximum Drawdown | 11.31 | |||
| Value At Risk | (2.65) | |||
| Potential Upside | 4.94 | |||
| Downside Variance | 2.89 | |||
| Semi Variance | 1.32 | |||
| Expected Short fall | (2.40) | |||
| Skewness | 0.2169 | |||
| Kurtosis | (0.15) |
| Risk Adjusted Performance | 0.2813 | |||
| Market Risk Adjusted Performance | 0.6665 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 1.15 | |||
| Downside Deviation | 1.7 | |||
| Coefficient Of Variation | 279.24 | |||
| Standard Deviation | 2.29 | |||
| Variance | 5.25 | |||
| Information Ratio | 0.3011 | |||
| Jensen Alpha | 0.6617 | |||
| Total Risk Alpha | 0.4499 | |||
| Sortino Ratio | 0.406 | |||
| Treynor Ratio | 0.6565 | |||
| Maximum Drawdown | 11.31 | |||
| Value At Risk | (2.65) | |||
| Potential Upside | 4.94 | |||
| Downside Variance | 2.89 | |||
| Semi Variance | 1.32 | |||
| Expected Short fall | (2.40) | |||
| Skewness | 0.2169 | |||
| Kurtosis | (0.15) |
Consider Duolingo's intraday indicators
Duolingo intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Duolingo stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Duolingo Corporate Filings
F4 | 20th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Duolingo Stock media impact
Far too much social signal, news, headlines, and media speculation about Duolingo that are available to investors today. That information is available publicly through Duolingo media outlets and privately through word of mouth or via Duolingo internal channels. However, regardless of the origin, that massive amount of Duolingo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Duolingo news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Duolingo relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Duolingo's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Duolingo alpha.
Duolingo Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Duolingo can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Duolingo Historical Investor Sentiment
Investor biases related to Duolingo's public news can be used to forecast risks associated with an investment in Duolingo. The trend in average sentiment can be used to explain how an investor holding Duolingo can time the market purely based on public headlines and social activities around Duolingo. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Duolingo's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Duolingo and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Duolingo news discussions. The higher the estimate score, the more favorable the investor's outlook on Duolingo.
Duolingo Corporate Management
| Stephen Chen | General Counsel | Profile | |
| Linda Simensky | Head Content | Profile | |
| Sam Dalsimer | Global Communications | Profile | |
| Molly Lindsay | Chief Officer | Profile | |
| Robert Meese | Chief Officer | Profile | |
| Kendra Ross | Head Impact | Profile | |
| Cambria Dunaway | Chief Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Duolingo. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Duolingo Stock please use our How to buy in Duolingo Stock guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Duolingo. If investors know Duolingo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Duolingo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 7.167 | Earnings Share 1.83 | Revenue Per Share 16.035 | Quarterly Revenue Growth 0.399 | Return On Assets 0.0325 |
The market value of Duolingo is measured differently than its book value, which is the value of Duolingo that is recorded on the company's balance sheet. Investors also form their own opinion of Duolingo's value that differs from its market value or its book value, called intrinsic value, which is Duolingo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Duolingo's market value can be influenced by many factors that don't directly affect Duolingo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Duolingo's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Duolingo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Duolingo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.