Duolingo's AI Splurge Is A Reason To Buy, Not Sell (Upgrade)

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryDuolingo (DUOL) offers compelling GARP potential, combining robust user growth, a pristine balance sheet, and ongoing investments in AI-driven features.DUOL expects 2026 bookings of $1.274–$1.298 billion and revenue of $1.197–$1.221 billion, reflecting continued double-digit top-line expansion.Short-term EBITDA is forecast to dip slightly to $299–$305 million as management accelerates investment in user growth and AI-powered functionality.With no debt and $1.14 billion in cash, DUOL’s risk profile is low, supporting a soft ‘buy’ rating despite near-term margin pressure.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » stockcam/iStock Unreleased via Getty Images For anyone who wants exposure to a language learning platform, one interesting company to consider buying into is Duolingo (DUOL). In the past, I used the platform. Although I no longer do, I recognizeThis article was written byDaniel Jones36.89K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.