Duolingo today
- 52 weeks
- 145.05 dollars
▼
441.77 dollars
- P/E ratio.
- 154.32
- The target price
- $ 375.00
Just a few weeks ago, Duolingo Inc Nasdak: near He was flying high, an increase of 200 % since August and put new levels at all in February. Now, the technology company has decreased by more than 30 % in barely two weeks, and it approaches the main support levels that can make this turning point.
The largest part of the damage came in the last trading sessions after a profit report last Thursday. Investors’ reaction to the Master of 40 % of the profitability of the share 40 %, which overwhelmed strong revenues otherwise.
The arrow has now returned all its gains since October, and the market reaction indicates that expectations have increased significantly.
But with analysts doubling their upward outlook, the question is: Did the sale go away?
Wall Street focuses on the wrong number
Duolingo’s profit report was not bad. In fact, the growth of revenue was exceptional. The company has recorded a 38 % increase in revenue on an annual basis, driven by a strong user growth as more people deals with the Duolingo platform and higher transfer rates of paid subscriptions, which is a main measure of long -term sustainability.
These are strong numbers in any standard, and they strengthen the idea that Duolingo’s business is still growing quickly. However, Wall Street was installed on one number – profits per share (EPS).
Analysts expected the share profit number to reach $ 0.48, but instead, Dolingo offered only $ 0.28-Miss 40 %, due primarily to the upper operating expenses of the expected. The sharp market reaction indicates that investors were not ready for such large profits after the huge gathering of the share.
But the real question is whether this is one time stumbling or a sign of deeper issues. If the company can tighten expenses in the next quarter, feelings may change quickly, especially given that the company’s basic growth story is still strong.
Analysts still see a great rise
Duolingo stock forecast today
$ 375.00
32.77 % upModerate purchase
Based on 14 analyst classifications
| High expectations | 425.00 dollars |
|---|---|
| Average expectations | $ 375.00 |
| Low expectations | $ 275.00 |
Duolingo shares details details
Despite post -profit sales, Wall Street analysts do not retreat.
Since last week’s profits, Barclays, JPMorgan Chase and PIPER SANDLER have repeated the purchase assessments, as the price targets reach $ 410.
This represents a 38 % increase in the closing price of $ 295, which will return Duolingo near its highest levels ever.
When many analysts emphasize their affirmation of their bullish view after a large sale, there is often a sign that the basics remain intact and that the market may be exaggerated.
It is clear that analysts are looking to miss profits and focus on the long -term growth growth of the company and the subscriber’s expansion.
Why do technologies indicate that the bounce can be imminent
From a technical perspective, Duolingo looks very exaggerated. The relative strength index sits in only 28 years, a level historically indicating a possibility of sharp recovery.
The arrow is now recovered along the October levels, which is the price that was previously working as support before the start of the large gathering. If buyers enter all over this field, the next step may be a rapid recovery gathering led by traders who are looking for a bounce in the sale, or sellers on the open they get profits after the last collapse, or the institutions continue to accumulate with a discount.
If the arrow is found support and stability, the next step may be a rapid recovery towards a scale of $ 330 – 350 dollars before the market reassessing the Duolingo growth capabilities in the next profit cycle.
What should happen after that
In order for Duolingo to maintain a recovery, you will need to prove that investors that the last quarter profit was strange. This means showing improving cost control in the next profit report, continuing to increase revenues at a strong pace, and avoid any other margin pressure that may raise concerns about profitability.
If Duolingo is able to offer cleaner profits in the next quarter, there are all reasons for the belief that this sale was just stumbling on the way rather than a sign of a deeper problem.
Duolingo market is harshly punished for missing its profits, but analysts and technicians point out that this sale may be very far. As revenue continues to grow, analysts retain the bullish classification, and the deep excessive arrows, there is a strong situation of severe recovery.
For those looking to pick up high -growth shares at a reduced price, this may be one of the best entry points in months.
Before you think about duolingo, you will want to hear this.
Marketbeat follows the best research analyst at Wall Street, the best performance in Wall Street and the stocks they recommend to their customers on a daily basis. Marketbeat has selected the five shares whom the top analysts quietly whispered to their customers to buy now before wiping the broader market … Duolingo was not in the list.
While Duolingo currently has a moderate purchase classification among analysts, analysts from the top rankings believe that these five stocks buy better.
Show the five stocks here
If the company’s CEO, CO, and the financial manager, all sell their shares, do you want to know? Marketbeat only collected the twelve shares menu that the companies’ families abandon. Complete the form below to know the companies that made the list.
