Duolingo's fun, AI-powered language app eyes expansion after strong growth
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Duolingo is an online education company focused on language learning, but with ambitions to expand into other subjects over time like math and music.
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The company relies on gamification and AI to make learning engaging and effective. Features like streaks, leaderboards, and conversational AI are key.
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Duolingo already has strong traction in language learning, a $40B market growing over 10% annually. But there is still huge room for growth in market share.
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Financials are strong, with $484M in revenue last year and 22% cash profit margins, along with fast growth.
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At 17x sales the stock seems expensive, but has similarities to early days of big winners like Amazon and Netflix. Worth buying now while still early.