Duolingo Shares Dive After Q1 Results: What's Going On?
Portfolio Pulse from Vaishali Prayag
Duolingo, Inc. (NASDAQ:DUOL) shares fell 18.07% after reporting Q1 results with EPS of 57 cents, beating estimates by 111.11%, and sales of $167.6 million, exceeding expectations by 1.16%. The company saw a 41% increase in total bookings and a rise in paid subscribers to 7.4 million. Despite positive results and raised full-year revenue guidance, shares dropped to $200.50. Analysts are divided, with Needham raising its price target to $267 and Barclays lowering theirs to $230.
May 09, 2024 | 7:38 pm
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Duolingo reported strong Q1 earnings, surpassing estimates with a significant increase in bookings and paid subscribers. Despite this, shares fell 18.07% to $200.50.
The drop in Duolingo's share price despite outperforming Q1 estimates and raising full-year revenue guidance could be attributed to market reactions to broader economic concerns or profit-taking by investors. The mixed analyst ratings post-earnings also contribute to uncertainty around the stock's short-term direction.
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