Duolingo: Strong Monetization and Strategic Product Investment Support Buy Rating Despite Near-Term DAU Concerns

Tip Ranks
2026.01.13 10:36
portai
I'm PortAI, I can summarize articles.

Omar Dessouky from Bank of America Securities has reiterated a Buy rating on Duolingo with a price target of $250. He cites strong monetization and strategic product investment as key factors, despite concerns over daily active users (DAUs). Preliminary fourth-quarter results show a 30% year-over-year increase in DAUs and bookings exceeding management's guidance. Dessouky believes the market undervalues Duolingo's potential as an entertainment-focused learning platform, suggesting future growth may surpass expectations. He maintains a Buy rating, supported by constructive guidance for Q1 2026.