Duolingo Demand, Earnings Lift Shares

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DUOL offers an international language learning platform, delivering courses in many languages, such as Spanish, English, French, German, Italian, Portuguese, Japanese, Chinese, and more. It’s game-like approach to language learning is popular among users. DUOL has also been using generative AI to improve its courses and improve operations, and recently more than doubled the number of languages it teaches. The company continues to branch out too – for instance, it’s now offering math, music, and chess courses.

DUOL’s first-quarter fiscal 2025 financial results showed total daily active users rising by 49% year-over-year. The company’s quarterly revenue was $230.7 million, which helped generate per-share earnings of $0.72. On a year-over-year basis, sales jumped 38% and earnings rose 26%. The company reported more than 10 million paying subscribers, including 46.6 million daily active users. DUOL’s full-year forecast calls for up to $996 million in revenue after generating $748 million in sales last year.

It’s no wonder DUOL shares are up 55% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Boosts Duolingo

Institutional volumes reveal plenty. In the last year, DUOL has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in DUOL shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com
Source: www.mapsignals.com

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Duolingo.

Duolingo Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DUOL has had strong sales and earnings growth:

  • 3-year sales growth rate (+44%)

  • 3-year EPS growth rate (+246.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +49.6%.

Now it makes sense why the stock has been powering to new heights. DUOL has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Duolingo has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when DUOL was a top pick…sending shares higher: