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- 📈 $DUOL: Strong Revenue with a BBL to Match
📈 $DUOL: Strong Revenue with a BBL to Match
Happy Tuesday,
Our favorite time of the year -Spring transition is creeping up and we’re waiting patiently for Apple to approve the Underwriter app!
Thanks to everyone who voted on our roadmap poll last week. ‘Give me a strategy to grow my networth` was the most popular response.
Featured Stock of the Week
A note that neither Underwriter nor this newsletter provides investing or trading advice. Please consult with a financial professional before making investment decisions. By reading, you agree to not take this as financial advice and assume all risk.
DUOL: Duolingo $186.14
Our featured stock of this week is Duolingo.
Duolingo’s stock has doubled over the past year and it continues to push the boundaries of marketing with ads like its mascot Owl getting a BBL haha.
40% Predicted YoY Growth
During their last earnings call, Duolingo had raised its full year guidance to 40% year-over-year growth in revenue. Guidance is basically a fancy term for what a company estimates for the future. For Duolingo to raise guidance is a sign that they have a really positive outlook of their business. With Duolingo recently launching a new math and music app, its’ well positioned to increase revenue from new sources.
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160% Two Year Subscriber Growth
During their last earnings call, Duolingo noted having 70 million monthly active users with 5.2 million subscribers. With a raised outlook on guidance, it might be that Duolingo will report another strong growth in revenue. The stock recently bounced from a new low, also known as a support level. When a stock rebounds or bounces from a support level and rises, it suggests that the market views the stock's value as being no lower than that level. In this case, Duolingo seems to have found a new support level at around $178, it now sits at $186.14 Additional Reading |  |
$10 million increase in net cash
Cash is ultimately what’s left over all expenses have been paid (salaries, operating expenses, interest, debt, share buy backs etc). It’s important as such a basic but fundamental measure of general business health. Duolingo noted an $8 million increase in net cash. Seemingly trivial, the growth here is a sign that Duolingo is run very well and is in a great position to keep succeeding. Duolingo is set to report earnings Wednesday, February 28th…stay tuned. |  |
Major Market News
Earnings Week for Shopify, Airbnb, and AIG
made with Midjourney, Runway ML and Descript
Tuesday, Feb 12th - Core CPI
What: Analyzes inflation (Consumer Price Index)
What: Inflation has been the thing weighing on stocks for the last year.
Impact: A market will be watching for a drop in inflation as it means that average prices for consumers are dropping. If it does drop, it could be a positive sign that The Fed may drop interest rates. Many predict that a drop in interest rates would add more fire to the current bull run. If inflation rises, it may mean that everyday goods (bread, coffee etc) are still overpriced and therefor consumers have less to spend on other things which may slow economic activity.
Source: Bureau of Labor Statistics
Thursday, Feb 15th - Initial Jobless Claims
What: Measures how many people filed for unemployment for the first time in the last week
Impact: A growing number is bad as it likely means that many are struggling to find work and that economic activity is slowing.
Source: Bureau of Labor Statistics
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