Trade Call: Potential Rebound Setup for Duolingo

2 months ago

Josh

"The stock pick that started to get very attractive and is not on its first red candle, but it's had a series of red candles and has had an extremely strong fall off from the top is Dol Dolingo. Dol Dolingo is a gamified learning platform that teaches languages core and newer math and music with ads and subscriptions, plus an English proficiency test for schools serving consumers, kids, educators, and institutions. They use a product called Bird Brain, which autocreates lessons, audio content at scale, as well as Power GPT4 tutoring features, role-play, explain my answer, and it helps generate endgrade tests. So, this is a company that's embracing innovation and was extremely fast growing. So, why has the stock fallen so much? Well, they sank on a weak outlook. The management team pivoted from growth to quality of business, which caused Wall Street to freak out. It dropped $27%. It was a $70 drop."

The speaker identifies Duolingo (implied by 'Dol Dolingo') as an attractive trade setup after a significant drop triggered by a pivot in management strategy. He highlights the extensive decline and technical overselling, suggesting that following key chart signals could offer a potential entry after a short waiting period.

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