$Duolingo, Inc.(DUOL)$ is basically a $Spotify Technology S.A.(SPOT)$ story.
High growth in literally every metric — revenue, operating margins, subscriber conversion — yet the stock has been under pressure due to AI concerns, just like $Spotify Technology S.A.(SPOT)$ had been back then when Apple Music, Amazon Music and YouTube Music emerged to compete.
Platforms that have crafted out a niche for themselves tend to have an edge within the niche. So much A/B testing has been done to keep user engagement and people instinctively associate language learning with Duolingo. They also have a huge social media following which helps funnel organic growth at no customer acquisition cost.
Unlike Spotify back then, Duolingo has really healthy financials. They aren't running operating losses like Spotify did back when their stock was under pressure. In fact Duolingo has $1B in excess cash. Not to mention, they are diversifying into chess and music learning too and are already seeing success in the chess space.
I wouldn't be surprised if the next earnings validates their stock price and it runs up further.
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