Morgan Stanley analyst Nathan Feather has maintained their bullish stance on DUOL stock, giving a Buy rating today.
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Nathan Feather has given his Buy rating due to a combination of factors that highlight Duolingo’s strategic use of its scale to strengthen its market position. The recent Duocon event demonstrated how Duolingo is leveraging its extensive user base to expand into new learning areas, such as Chess, which has quickly gained traction and surpassed other subjects like Math and Music in terms of user engagement. This rapid adoption indicates the potential for Duolingo to diversify its offerings and attract a broader audience.
Furthermore, Duolingo’s introduction of the Duolingo Score aims to establish a new standard in language proficiency, capitalizing on its significant market share. This move could further solidify its competitive advantage against other language learning platforms. Despite concerns about AI developments potentially impacting Duolingo’s market position, the company’s ability to innovate and expand its educational content suggests a promising growth trajectory, justifying the Buy rating.