Why Duolingo Stock Skyrocketed 57% Last Month
Shares of language-learning app Duolingo (NASDAQ: DUOL) skyrocketed 57.1% in March, according to data provided by S&P Global Market Intelligence. The company reported financial results that were good. But guidance blew Wall Street's expectations out of the water, which I believe is the primary reason that Duolingo stock absolutely crushed the 3.5% return for the S&P 500 during the month.
After the market closed on Feb. 28, Duolingo reported financial results for 2022, and I think one statement near the top of the press release sums it up. Management wrote, "For the sixth quarter in a row, we saw accelerating user growth on Duolingo." The company now has 60.7 million monthly active users. And despite that size, growth is ramping up, not hitting a ceiling.
Accelerating user growth from Duolingo is surprising a lot of investors, myself included. Moreover, the company is winning when it comes to selling users on higher-end subscription products.
Source Fool.com
