From Nasdaq.: 2025-06-11 03:39:00

The stock market has been volatile in the first half of 2025, with AI profits boosting the market while trade war fears bring it down. Duolingo’s stock has surged by 53% this year, as the education platform thrives on smartphones without import taxes. The company’s revenue grew 38% in the first quarter, with operating income surging by 44%. With a large base of paying subscribers, Duolingo’s profits are expected to expand further. The company’s unique AI features, such as video calls with a bot named Lily, could drive continued growth. Despite appearing overvalued, Duolingo’s stock may still be a reasonable investment due to projected earnings growth. The company’s forward PEG ratio suggests a justifiable valuation. However, investors should be cautious of the high expectations associated with the stock. The Motley Fool Stock Advisor team did not include Duolingo in their list of top 10 stocks, but the company’s potential for growth remains promising.



Read more at Nasdaq.: This Artificial Intelligence (AI) Stock Is Up 53% in 2025. Here’s How It Could Keep Soaring.