Duolingo stock tumbles, after KeyBanc analyst said stock had rallied to far to remain bullish


Shares of Duolingo Inc. DUOL, -13.53% tumbled 13.6% in afternoon trading Monday, to pullback from the previous session’s highest close of this year, after KeyBanc analyst Justin Patterson downgraded the online language-learning company, due primarily concerns over valuation. Patterson cut this rating to sector weight, after being at overweight since March, as the stock price exceeded his previous price target of $105. He currently has no target on the stock. Duolingo shares have gained 2.0% over the past three months, while the S&P 500 SPX, -0.85% has shed 12.4%. Patterson said he believes that after the stock’s recent run up, it now “appropriately” reflects the product cycle. “Given headwinds from inflation and signs of softness in other freemium apps, we believe multiple expansion and material revisions are less likely over the coming quarters,” Patterson wrote in a note to clients. “As such, we view risk/reward as balanced.”

This article was originally published by Marketwatch.com. Read the original article here.

Previous article: 3 hurdles you need to clear when retiring abroad—from retirees who have lived in Ireland, France and Panama
Next articleCoronavirus Update: Moderna says new booster protects better against BA.4, BA.5


Please enter your comment!
Please enter your name here