This language app with 40% upside is JPMorgan’s favorite education play

[Pelican Press 0]

This language app with 40% upside is JPMorgan’s favorite education play

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as part of the first-quarter numbers. “We believe Duolingo could raise its 2024

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based on solid 1Q trends & recent third-party data, strong marketing, & healthy ********** — a full-year guidance raise would align with management’s historical beat & raise cadence,” he wrote. Smilek praised Duolingo’s strong advertising presence that’s resulted in rising user growth. “Duolingo’s product obsession & gamification have driven its industry-leading scale, brand reputation, strong engagement, & efficient customer acquisition (~90% of user growth organic),” he wrote. “Our analysis across social media platforms suggests 1Q & 2Q [to date] marketing campaigns have been strong, supporting acquisition & engagement trends.” Besides rising user growth, the analyst believes that a 20% increase in bookings and revenue growth could be achievable for Duolingo due to other catalysts such as paid sub growth and monetization, alongside a longer term, secular shift towards online language learning. Another key opportunity for the company comes from advanced English learning courses. One other tailwind behind Duolingo comes from its entry in to the S & P MidCap 400 Index effective before the market open on Monday April 22. As a result, passive index funds that track the midcap index and its value or growth subsets will be forced to buy Duolingo. Duolingo came public in the summer of 2021 at an IPO price of $102 in an offering led by Goldman Sachs and Allen & Co. — CNBC’s Michael Bloom contributed to this report.

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Pittsburgh,Earnings,Duolingo Inc,Stock markets,Investment strategy,business news
#language #app #upside #JPMorgans #favorite #education #play

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