Buy the Dip on Duolingo (DU)

2 months ago

Mark Roussin

"Beginning with stock number one, which is going to be Duolingo, stock ticker DU. And Duolingo is a subscription-based learning platform. The company recently reported earnings and the stock got absolutely crushed after the report with the stock falling more than 25% on soft guidance. In fact, the company reported a double beat with the Q3 EPS blowing away expectations and revenues beating the 11.4 million that analysts were looking for. But you have heard me say this before. It's less about the results and more about the guidance. When you and I invest in a stock today, it's great what they've done in the past. But our investment today is for the future. And I believe although investors are throwing out and slamming that sell button right now on Duolingo, it is presenting a huge opportunity for long-term patient investors."

The speaker identifies Duolingo as a prime buy-the-dip candidate after a steep sell-off driven by soft operational guidance, despite strong past earnings. He believes the current price discount offers a long-term opportunity, supported by future growth catalysts like AI-driven enhancements in its subscription platform.

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