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Investing.com - Raymond James has reiterated its Market Perform rating on Duolingo Inc. (NASDAQ:DUOL), currently valued at $12.86 billion, following the company’s annual virtual Duocon event. The language learning platform has demonstrated impressive growth with revenue increasing 39.51% over the last twelve months.
During the event, Duolingo announced several feature updates, including integration of the app’s Score system with LinkedIn, expanded access to Chess, and improvements to Video Call functionality.
The language learning platform emphasized its focus on opening opportunities for learners through education journeys and career progression, reinforcing its core mission.
Raymond James noted that while softening user growth from third-party data sources has weighed on Duolingo shares following second-quarter results, the firm believes the company’s product-led growth story remains "firmly intact" with the latest announcements.
The investment firm also observed that historically, Duolingo has experienced spikes in user activity following Duocon events, suggesting potential near-term engagement benefits.
In other recent news, Duolingo has been the focus of several investment firms following its Duocon event. Morgan Stanley reiterated its Overweight rating and set a price target of $500, expressing confidence in Duolingo’s ability to enhance its competitive edge in the language learning market. Similarly, KeyBanc maintained its Overweight rating with a $460 price target, noting that the event’s updates, including features like Video Call and Duolingo Chess, met expectations. Citizens JMP also reiterated a Market Outperform rating with a $500 price target, stating that concerns over slowing user growth are likely temporary.
In regulatory news, Hungary’s competition authority has launched an investigation into Duolingo. The probe focuses on potentially misleading claims about the effectiveness of its language learning program and alleged psychological pressure on users to subscribe to paid services. The Hungarian regulator’s inquiry adds a layer of complexity to Duolingo’s recent developments. Despite these challenges, the company continues to receive positive evaluations from investment firms, highlighting its strategic initiatives and market potential.
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