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Catalysts
- Duolingo Max, featuring AI-enabled features, somewhat positively adopted.
- Steady growth continue in current market conditions.
- Turned profitable in 2023 (layoffs due to AI).
- Alternatives aren’t as ‘gamified’ or have the brand recognition.
- Great referral program boosted revenues recently.
- More revenue streams
- Partnerships:
- School partnerships
- HBO Max: learn language before you watch a movie
- International expansion
- Partnerships:
Risks
- Negative sentiment to AI use
- Older users prefer contractors
- Disruption from AI competitors?
- Underperformed compared to S&P competitors, although much smaller than other competitors and recent IPO.
- Expensive PE.
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Disclaimer
waqifalam is an employee of Simply Wall St, but has written this narrative in their capacity as an individual investor. waqifalam holds no position in NasdaqGS:DUOL. Simply Wall St has no position in the company(s) mentioned. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimate's are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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Consensus Narrative from 15 Analysts
Generative AI Investments Will Drive User Engagement And Efficiency In Language Learning
Key Takeaways Investment in generative AI and automation aims to enhance product engagement and efficiency, improving net margins and driving subscription revenue growth. Expanding English content and regional marketing is expected to boost international market share and sustain user growth.
View narrativeUS$347.91
FV
3.1% undervalued intrinsic discount30.78%
Revenue growth p.a.
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14 days ago author updated this narrative
