Duolingo (NASDAQ:DUOL) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Duolingo (NASDAQ:DUOL) from a sell rating to a hold rating in a research report sent to investors on Sunday.

A number of other research analysts have also weighed in on the stock. Weiss Ratings raised shares of Duolingo from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, June 18th. JPMorgan Chase & Co. upped their price objective on shares of Duolingo from $94.00 to $125.00 and gave the stock a “neutral” rating in a research report on Friday, July 17th. Evercore set a $105.00 price objective on shares of Duolingo in a research note on Thursday, August 6th. Needham & Company LLC reissued a “buy” rating and set a $145.00 target price on shares of Duolingo in a research report on Thursday, August 6th. Finally, Morgan Stanley boosted their target price on Duolingo from $95.00 to $125.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $130.50.

Duolingo Trading Up 7.3%

Shares of Duolingo stock opened at $139.64 on Friday. The company has a market capitalization of $6.53 billion, a P/E ratio of 16.55, a price-to-earnings-growth ratio of 1.07 and a beta of 0.87. The stock has a fifty day simple moving average of $129.06 and a 200 day simple moving average of $114.21. Duolingo has a 12-month low of $87.89 and a 12-month high of $368.39. The company has a current ratio of 2.72, a quick ratio of 2.72 and a debt-to-equity ratio of 0.06.

Duolingo (NASDAQ:DUOL) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.06. The business had revenue of $298.45 million for the quarter, compared to analysts’ expectations of $295.58 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.The business’s revenue was up 18.3% on a year-over-year basis. During the same period last year, the business earned $0.91 EPS. On average, sell-side analysts anticipate that Duolingo will post 2.67 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Duolingo

Institutional investors have recently bought and sold shares of the company. Root Financial Partners LLC increased its position in Duolingo by 194.1% in the first quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock worth $25,000 after buying an additional 165 shares during the last quarter. EFG International AG purchased a new position in shares of Duolingo during the 4th quarter valued at $26,000. AlphaCentric Advisors LLC bought a new position in shares of Duolingo during the 4th quarter worth $33,000. Banque Cantonale Vaudoise grew its stake in shares of Duolingo by 51.1% during the 1st quarter. Banque Cantonale Vaudoise now owns 340 shares of the company’s stock worth $34,000 after acquiring an additional 115 shares during the period. Finally, FNY Investment Advisers LLC purchased a new stake in Duolingo in the 2nd quarter worth about $34,000. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: D.A. Davidson upgraded Duolingo from “Neutral” to “Buy” and raised its price target to $160 from $130, implying additional upside from recent trading levels. The analyst cited a potential “turning point” as the company improves its core product and monetization strategy. Duolingo Nears a Turning Point and It’s Why This Analyst Upgraded the Stock to Buy
• Positive Sentiment: Investors are also encouraged by strong user growth, improving cash flow and sharply lower artificial-intelligence costs. These factors helped support Duolingo’s recent rally and could improve operating leverage if monetization accelerates. Duolingo Stock Jumps 22.1% in Three Months: Can the Rally Continue?
• Positive Sentiment: Duolingo is expanding its math offerings with more advanced and personalized learning features, broadening its addressable market beyond language education and reinforcing its product-led growth strategy. Duolingo Expands Its Math Services for More Advanced and Personalized Learning
• Neutral Sentiment: The bullish case follows Duolingo’s latest quarterly beat, including earnings of $0.66 per share versus a $0.60 consensus estimate and revenue growth of 18.3% year over year. However, investors are assessing whether growth can reaccelerate.
• Negative Sentiment: Analysts warn that slower bookings and user-growth trends, rising costs and a premium valuation leave less room for execution mistakes. Sustaining the rally will likely depend on stronger monetization and continued product momentum. Should You Buy Duolingo as Growth Slows and Valuation Stays High?
• Negative Sentiment: AI-powered alternatives such as Google Gemini highlight competitive pressure in language learning, making Duolingo’s human-centered approach and differentiated engagement important to its long-term outlook. I Replaced Duolingo With Gemini

Duolingo Company Profile

Duolingo, Inc (NASDAQ:DUOL) is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company’s core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.