Duolingo has a big Goal: AI is to Teach the Content Like a Human Teacher. The Setback of the AI Profiteer Offers an Opportunity!

• Duolingo should be able to establish itself  as an AI-based online education company that offers learning content beyond languages, math and music in the medium term.
• The JPMorgan analysts initiated coverage with an Overweight rating and a $270 target. Future company growth should exceed 20%.

Duolingo (DUOL) is known for its language learning app and has now also integrated learning content for math and music with its all-in-one app. In the last quarter, the company once again impressed with 45% growth to $151 million and EPS of $0.26. Encouragingly, the number of paying users increased by 57% to 6.6 million. Duolingo's service is already used by 88.5 million users per month (+46%). The fact that the EBITDA margin increased from 17.6% to 23.3% stands out. Generative AI helps with developing new features and providing learning content, which can be generated much faster, for example. The goal is to use AI to convey content in the same way as a human teacher.

JPMorgan initiated coverage on Monday with an Overweight rating and a target of $270. The analysts assume that the group's revenue is likely to grow by more than 20% over the next few years. The share returned to the initial pivotal price line. A swing low should have formed around $ 200. Traders can bet that the stock will once again attack $250.

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