Duolingo Stock Fair Value – William Blair Raises Q4 2024 EPS Estimates for Duolingo in Latest Stock Analyst Report

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Duolingo ($NASDAQ:DUOL), Inc. is a language learning platform that has quickly become a household name in the world of education technology. Investors have taken notice of Duolingo’s success, with the company going public in July 2021. This success is attributed to the company’s innovative approach to language learning and its ability to attract a loyal user base. In their latest stock analyst report, William Blair has increased their Q4 2024 earnings per share (EPS) estimates for Duolingo. This news is welcomed by investors as it reflects the company’s strong growth potential and positive outlook for the future. One of the key factors driving this increase in EPS projections is Duolingo’s consistent revenue growth. This growth is largely driven by the company’s premium subscription model, which offers users additional features and content for a fee.

Another contributing factor to Duolingo’s projected Q4 2024 EPS growth is its expanding user base. The success of Duolingo is also attributed to its constant innovation and adaptation to changing market demands. The company recently launched a new product, Duolingo ABC, which teaches young children how to read and write in English. This expansion into new markets and target demographics is expected to drive further revenue growth for Duolingo in the coming years. In conclusion, investors can expect a positive outlook for Duolingo’s stock in the coming years, as reflected by William Blair’s increased Q4 2024 EPS projections. With its innovative approach to language learning, expanding user base, and strong revenue growth, Duolingo is well-positioned for continued success in the competitive education technology market.

Earnings

According to the latest stock analyst report from William Blair, a leading financial services firm, they have raised their fourth quarter 2024 earnings per share (EPS) estimates for Duolingo. This report comes after the language learning platform’s earnings report for the fourth quarter of fiscal year 2023 was released on December 31, 2021. In this earning report, Duolingo reported a total revenue of 73.01 million USD and a net loss of 17.52 million USD. In fact, within the last three years, Duolingo’s total revenue has more than doubled from 73.01 million USD to 150.99 million USD. This is a significant milestone for the company and showcases its growth potential in the language learning market. With this in mind, it is no surprise that William Blair has raised their EPS estimates for Duolingo in the fourth quarter of 2024.

This news is not only promising for the company’s future financial performance but also reflects the confidence of financial experts in Duolingo’s ability to continue expanding and improving its services. Duolingo’s strong performance in the past few years can be attributed to its innovative approach to language learning, which has gained popularity among users globally. The platform offers a variety of courses in different languages, making it accessible and appealing to a wide audience. In conclusion, with their continuous growth and positive financial performance, Duolingo is proving to be a successful player in the language learning industry. The raised EPS estimates from William Blair further solidify their position and highlight their potential for further growth and success in the future.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Duolingo. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Duolingo. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Duolingo. More…

Key Ratios Snapshot

Some of the financial key ratios for Duolingo are shown below. More…

Price History

This news comes after DUOLINGO‘s stock experienced a slight dip on Monday, opening at $325.8 and closing at $318.23, down by 2.65% from its previous closing price of $326.89. This increase in projected earnings per share (EPS) for the fourth quarter of 2024 is a positive indication for the company’s future growth and financial performance. It shows that analysts have confidence in DUOLINGO’s ability to generate higher profits in the years to come. The rise in DUOLINGO’s stock price can also be attributed to the company’s strong performance in recent years. Its innovative approach to language learning, through gamification and personalized lessons, has helped it stand out in a competitive market. Moreover, DUOLINGO’s focus on expanding into new markets and offering a wide range of languages, including rare and endangered ones, has also contributed to its success.

This has attracted investors’ attention and created a positive outlook for the company’s future growth potential. With William Blair’s updated EPS estimates, DUOLINGO’s stock is expected to continue its upward trend and provide attractive returns for investors. As the demand for language learning continues to rise globally, DUOLINGO is well-positioned to capitalize on this trend and maintain its strong financial performance in the long run. With its innovative approach, expansive user base, and successful expansion strategies, DUOLINGO is poised for continued success and will likely remain a top player in the language learning industry for years to come. Live Quote…

Analysis – Duolingo Stock Fair Value

As an analyst at GoodWhale, I have conducted an in-depth analysis of DUOLINGO, a language learning platform. In this analysis, I have looked at the basics of the company and its current stock price. DUOLINGO’s core business is to provide language courses online, making it accessible to people all over the world. The platform offers a wide range of languages to learn, from popular ones like Spanish and French to less common ones like High Valyrian and Klingon. This diversity in languages is a major selling point for DUOLINGO, making it stand out in the competitive language learning market. Using our proprietary Valuation Line methodology, we have calculated that the fair value of DUOLINGO stock is around $168.6. This calculation takes into account various factors such as the company’s financials, growth prospects, and industry trends. This valuation indicates that the stock is currently overvalued by 88.7%, which raises concerns for potential investors. At the time of writing, DUOLINGO stock is trading at $318.23, significantly above its fair value. However, this overvaluation may not be sustainable in the long run and could lead to a correction in the stock price. In conclusion, while DUOLINGO is a strong and well-established company in the language learning sector, its stock appears to be overvalued at the current trading price. Investors should carefully consider this before making any investment decisions. As always, we at GoodWhale advise conducting thorough research and seeking professional advice before investing in any stock. More…

Peers

The language-learning market is a growing and competitive industry. Duolingo Inc, LAIX Inc, Newborn Town Inc, and Hello Pal International Inc are all companies that provide language-learning services. While each company has its own unique approach to language learning, they all share the common goal of helping people learn new languages. Duolingo Inc is one of the leading language-learning platforms and has a large user base. LAIX Inc is a mobile-first language-learning company that offers a variety of courses. Hello Pal International Inc is a social language-learning platform that helps people connect with others who are learning the same language. Newborn Town Inc is a language-learning company that focuses on providing immersive and realistic experiences.

– LAIX Inc ($OTCPK:LAIXY)

Newborn Town Inc is a publicly traded company with a market capitalization of 1.48 billion as of 2022. The company has a negative return on equity of 34.07%. Newborn Town Inc is engaged in the business of providing software and services for digital marketing and advertising.

– Newborn Town Inc ($SEHK:09911)

With a market cap of 11.01M as of 2022, Pal International Inc has a ROE of -21.32%. The company is engaged in the business of providing online and mobile social networking services. It offers a platform for people to connect with friends and family, share photos and videos, and engage in other activities.

Summary

Stock analysts at William Blair have recently revised their Q4 2024 EPS estimates for Duolingo, Inc. This indicates a positive outlook for the language-learning company’s future profitability. The increase in EPS estimates suggests that the company’s financial performance is expected to be better than previously anticipated. This analysis could be attributed to various factors, such as increasing demand for online education and the company’s recent IPO in July 2021.

It demonstrates the potential for growth and success in the language-learning market and could potentially lead to a rise in stock prices. Overall, this investing analysis highlights a promising future for Duolingo.