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how to buy duolingo stock

by Pascale Strosin Published 3 years ago Updated 2 years ago
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How to buy shares in Duolingo.

  • Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  • Open your brokerage account. Complete an application with your details.
  • Confirm your payment details. Fund your account.
  • Research the stock. Find the stock by name or ticker symbol – DUOL – and research it before deciding if it's a good investment for you.
  • Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a ...

Full Answer

How do I buy Duolingo stock at the IPO price?

How to buy shares in Duolingo Compare share trading platforms. . Use our comparison table to help you find a platform that fits you. Open your brokerage account. . Complete an application with your details. Confirm your payment details. . Fund your account. Research the stock. . …

Is Duolingo going public?

Jul 28, 2021 · Duolingo IPO: language learning app’s stock goes public on the Nasdaq under ‘DUOL’ Shares will begin trading at $102 each with the company hoping to raise $520 million. Fast Company 07/28/2021

How does Duolingo make money?

Aug 27, 2021 · Duolingo ( DUOL 0.57% ), an education company which provides online classes in 40 languages, had its initial public offering on July 28 at $102 per share. The stock opened at $141.40 and now trades...

Is Duolingo a buy on Robinhood at $22?

9 hours ago · On Tuesday, February 1st, Durable Capital Partners Lp acquired 12,200 shares of Duolingo stock. The stock was purchased at an average price of $97.01 per share, with a total value of $1,183,522.00....

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Can you buy Duolingo stock?

Buy Duolingo shares from these brokerages Trade stocks in the app or online with $0 commissions.

Is Duolingo good stock to buy?

The Duolingo, Inc. stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.

Why is Duolingo stock so high?

Why Is Duolingo Stock So High? Duolingo largely remained above its IPO pricing in the intervening months. The company is valued at around $7 billion, and it's trading at about 20 times trailing 12-month sales. That's a high price to pay for bears who don't believe the company has growth potential.

Will Duolingo go up?

Duolingo's revenue rose 129% in 2020, and increased 68% year over year in the first half of 2021. Data source: Duolingo. For the full year 2021, Duolingo expects its revenue to rise 46%-50% and for its bookings to grow 40%-44%.Aug 27, 2021

What company owns Duolingo?

Alphabet ( GOOG -2.33% ) ( GOOGL -2.44% ) has a 13% stake in Duolingo -- making it the biggest outside investor in the company. In fact, Duolingo co-founder Luis von Ahn has sold two inventions to Alphabet.Aug 11, 2021

How does Duolingo make money?

Duolingo makes money via a premium subscription, display ads, as well as its language proficiency tests. The company operates under a freemium business model. It operates on a freemium business model.

Is Duolingo an American company?

Duolingo is actually a US-based learning app that was founded by Luis von Ahn and Severin Hacker. The company is headquartered in Pittsburgh, Pennsylvania, United States. Duolingo has experienced immense success since its release and it currently boasts of over 300 million users.Nov 7, 2020

How much does Duolingo plus cost per month?

Duolingo plus costs $6.99 per month. They offer a 14-day free trial (sometimes 7 days) and then charge you monthly. After years of using Duolingo, in my opinion, it's not necessary to upgrade to the Plus version.Jan 10, 2022

Duolingo Inc

The historical performance data for individual securities quoted on this website represents past performance reported as an average annual return for a given time horizon. Historical performance over the last 5 years, for example, is simply what the average return per year (compound annual growth rate) was for the investment over the past 5 years.

Invest in Duolingo Inc on Stash

Duolingo, Inc. (Duolingo) is a technology company. The Company provides a science-based language learning platform. The Company's platform enables users to learn languages online. Duolingo offers approximately 97 courses in 40 languages, and is available on iOS, Android, and Web at www.duolingo.com.

When is the Duolingo IPO Date?

With Duolingo recently filing its prospectus for a public market debut, the IPO calendar shows that date as July 28, 2021.

Duolingo Financial History

According to analysis conducted by the Census Bureau for 2018, a total of 67.3 million U.S. residents spoke a language other than English at home, which represented a record. This bilingual demographic was equal to the entire population of France at that time.

Duolingo Potential

For Duolingo to succeed, management must continue to build and market its powerful EdTech brand, making it the go-to name in learning a second language. If the execution is there, DUOL stock stands poised to deliver long-term gains. Mainly, Duolingo enjoys the red-carpet treatment as the underlying fundamentals are so powerful.

How to Buy Duolingo (DUOL) Stock

In many cases involving traditional public market debuts, retail investors find themselves locked out of the proceedings as IPO underwriters eschew regular everyday buyers for their choicest clients (i.e., institutional investors). But with Duolingo, mobile trading app Robinhood announced that it would allow its users to access DUOL stock pre-IPO.

DUOL Restrictions for Retail Investors

Before participating, review the Financial Industry Regulatory Authority’s (FINRA) rules on restricted persons. Established mandates help prevent those with insider information to profit from IPOs.

DUOL Pre-IPO

Besides Robinhood’s pre-IPO involvement, companies such as ClickIPO essentially act as institutional investors on behalf of interested retail buyers. By purchasing blocks of securities of select enterprises seeking to go public and distributing them to the public, ClickIPO democratizes the traditional IPO process.

Fluency in Profitability

While the U.S. improved dramatically over the years regarding the ability to speak another language other than English, on a per-capita basis, the nation has much further to go. For instance, 54% of Europeans are able to speak two languages, and a quarter can converse in at least two additional languages.

What we know about the Duolingo IPO

On Wednesday July 28, 2021, language-learning website and app, Dulingo, began publicly trading on the Nasdaq Global Select Market under the ticker symbol "DUOL."

Will I be able to buy Duolingo stocks from Canada?

You won't be able to buy Duolingo stocks on a Canadian stock exchange like the TSX or CSE. Instead, you'll need a Canadian broker that provides access to stocks sold on international exchanges.

How to buy shares in Duolingo

Before you can invest in Duolingo, you'll need to open a brokerage account.

Tax implications of buying US stocks in Canada

Agreements between Canada and the US require Canadians holding US stock investments to pay the US Internal Revenue Service (IRS) a 15% withholding tax on any dividends earned on their US stocks. Interest earned from bonds or other interest-yielding US investments are similarly taxed at a rate of 10%.

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The language-learning company faces unpredictable headwinds

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How does Duolingo make money?

Duolingo offers its online courses through its mobile app and website. It operates a freemium model: It monetizes free users with ads, while paid subscribers gain an ad-free experience with additional perks.

How fast is Duolingo growing?

Duolingo's monthly active users (MAUs), daily active users (DAUs), and paid subscribers have all gradually risen over the past two and a half years:

Duolingo's losses and headwinds

Duolingo's top-line growth looks impressive, but its bottom-line growth is wobbly. It remains unprofitable on a GAAP basis, but it generates a slim profit on an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) basis.

The valuation and verdict

Duolingo's stock currently trades at 20 times this year's sales. That high price-to-sales ratio might be justified if it can maintain a 40%-50% growth rate beyond 2021 -- but a lot of headwinds could throttle its growth. Therefore, I'd rather wait to see if Duolingo's business stabilizes before buying its stock.

How many languages does Duolingo teach?

Duolingo offers language-learning tools via a website and mobile app. Founded in 2009, the American company offers 106 courses in 38 languages and now has over 300 million registered users. Luis von Ahn, a Carnegie Melon Professor, started the project, inspired by his Guatemalan upbringing.

Who is Mike Stenger?

Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.

Is Duolingo profitable?

Like many companies at this stage, Duolingo is not yet profitable. In fact, its loss margin increased significantly in the last year, now $13.5 million. You can usually justify a widening loss margin by pointing out how the company is spending on growth worldwide. And this is true for Duolingo.

Duolingo's IPO date and price

Duolingo is expected to start trading on July 28. The company is offering 5.1 million shares in the IPO at $102 each. Initially, the company planned to offer the shares for $85–$95. The offering is expected to close on July 30. The net proceeds will be utilized for repaying debts, working capital requirements, and general corporate purposes.

Duolingo's valuation

The IPO will value Duolingo at around $3.7 billion and its terms put the company’s 2020 price-to-sales multiple at 22.9x. While that multiple might look high in absolute terms, Duolingo is a high-growth stock and its sales should rise significantly in the coming years.

Duolingo's stock forecast

The outlook for Duolingo stock looks promising. Between 2020 and 2027, the global market for online language learning is expected to grow at a CAGR of 18.7 percent to reach $21.2 billion by 2027. The primary drivers for the growth are continued globalization trends and consumer adoption of time-efficient and cost-efficient technology offerings.

Duolingo IPO stock is a good buy

Duolingo is the leading mobile learnings platform worldwide with more than 500 million downloads. The company claims that it's the top-grossing app in the Education segment on both the Apple App and Google Play Store. Duolingo provides courses in 40 languages to around 40 million monthly active users.

How to buy Duolingo IPO stock

Duolingo shares can be purchased using a traditional or online discount broker like Robinhood.

One telling statistic suggests most users quit the app in time

After spending more than a decade travelling the world exploring different cultures and languages, I'm happy to now be contributing to the Motley Fool's mission to make the world smarter, happier, and richer. What's great about exploring business and the economy is the insight it gives you into how things are in the world.

The 500-million-plus download problem

Duolingo shares an impressive stat in many of its filings: Since the app launched in 2012, it's been downloaded over 500 million times. The company shares this to signal the strength of its brand. However, in sharing this statistic, it's accidentally acknowledging its greatest weakness: customer churn.

Why it matters

Duolingo has four ways of generating revenue, the biggest of which is subscription revenue from its Duolingo Plus service. Subscription revenue is attractive for most companies if customer retention is high.

How things could get better

I believe Duolingo's management recognizes the need to be more than just a language-learning platform. Its stated vision when going public was to "diversify the scope of our platform beyond language learning to a variety of subjects, using the same product-focused, mobile-first, gamified approach to education."

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