11 Unstoppable Growth Stocks to Invest in Now

3. Duolingo, Inc. (NASDAQ:DUOL)

Number of Hedge Fund Holders: 52

3-Year Revenue Growth: ~43.1%

% Increase on a YTD Basis: ~57.3%

Duolingo, Inc. (NASDAQ:DUOL) operates as a mobile learning platform. Ryan MacDonald from Needham reiterated a “Buy” rating on the company’s stock with a price objective of $460.00. The analyst’s rating is backed by a combination of factors demonstrating the company’s healthy market position and growth potential. As per the analyst, Duolingo, Inc. (NASDAQ:DUOL)’s recent earnings report was impressive, demonstrating a rise in monthly active users fueled by the effective viral marketing strategy. In Q1 2025, the company’s daily active users (DAUs) came in at 46.6 million, reflecting a rise of 49% from the prior-year quarter, while monthly active users (MAUs) sat at 130.2 million, a rise of 33% from the prior-year quarter.

Duolingo, Inc. (NASDAQ:DUOL) was able to grow MAUs via product initiatives designed to make the app more social and engaging, via marketing, and by improving its courses. Collectively, these have supported the company to attract new users, retain existing users, and re-engage the millions of former users who return to the Duolingo App. As per the analyst, Duolingo, Inc. (NASDAQ:DUOL)’s success in cost optimization resulted in better-than-expected adjusted EBITDA performance, and MacDonald believes that there is potential for further financial leverage as the company continues to emphasize AI-driven initiatives. Notably, its adjusted EBITDA amounted to $62.8 million as compared to $44.0 million in the prior year quarter.