The Duolingo (NASDAQ: DUOL) stock price recorded gains of nearly 18% in Monday premarket trading. Whilst the company has not released any specific news, there are a few reasons that the world-famous language learner is still showing strength.
Since a successful IPO in July this year, Duolingo has seen some incredible progress in its popularity and its economic growth. With a stock surge of over 28% in September, Duolingo appears to be one of the best-performing companies that still sits largely under the investor radar.
When the pandemic struck, some struggled, some thrived. Duolingo was one of the latter. More importantly, though, the covid-induced growth bubble didn’t burst aggressively as life returned to normality, with the company still recording similar quarterly growth to the previous year – when people were stuck at home and learning a new language seemed more appealing.
Duolingo have big plans for the near future; as well as capitalizing on the ever-expanding online learning landscape, the company recently announced it won’t just focus on words, and that maths education was their next intended route of expansion.
This could prove to be a serious step for Duolingo and its shareholders. CEO Louis von Ahn sees the move as a potential move away from distractions like TikTok and Instagram.
The company has recorded positive revenue results, expects further diversification in its future growth plans, beat its main competitor Babbel to an IPO, and is still an incredibly popular platform for learning a language. With the stock price still sicking upwards, there are many opportunities with this small-cap star.
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