Duolingo Inc. (NASDAQ:DUOL) is one of the best up and coming stocks with huge upside potential. On September 8, Wells Fargo initiated coverage of Duolingo with an Underweight rating and $239 price target. The firm believes Duolingo’s user growth issues will persist in the medium term, and also believes that the company’s 2027 estimates have downside risk.
The company announced a strong performance, with sales increasing to $252 million from $178 million year-over-year, and net income growing to $45 million from $24 million in the same period. Duolingo reported an EPS of $0.91, which exceeded the expected $0.55.
Luis von Ahn, the Co-Founder and CEO, emphasized the achievement of record profitability and strong top-line growth, along with solid performance across all subscription tiers. Due to this strong performance, the company is once again raising its full-year guidance. Duolingo is now investing in both its core business and exciting new areas like Chess, Math, and Music, which are expected to drive long-term growth.
Duolingo Inc. operates as a mobile learning platform in the US, the UK, and internationally. The company offers courses in 40 different languages through its Duolingo app.
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This article is originally published at Insider Monkey.
