Needham analyst Ryan MacDonald has reiterated their bullish stance on DUOL stock, giving a Buy rating today.
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Ryan MacDonald has given his Buy rating due to a combination of factors including Duolingo’s strong performance in the second quarter, which exceeded expectations. The company experienced a rebound in its stock price following a period of decline, driven by higher-than-anticipated subscriber growth and an increase in average revenue per user (ARPU), alongside improved leverage across their financials.
Despite concerns over daily active user growth and some backlash related to the CEO’s focus on AI, Duolingo has taken steps to mitigate these issues, such as moderating their social media presence to rebuild positive sentiment. Additionally, the success of new initiatives like Max and Chess, along with efforts to enhance monetization strategies such as Energy, contribute to a positive outlook on the company’s growth trajectory.
MacDonald covers the Technology sector, focusing on stocks such as Yext, Liveperson, and Docebo. According to TipRanks, MacDonald has an average return of 5.8% and a 46.99% success rate on recommended stocks.