An analysis by Insider Monkey positioned Duolingo as one of the best beaten-down technology stocks for hedge funds to consider. The report cited recent, albeit diverging, analyst opinions as the backdrop for this thesis.
The analysis referenced J.P. Morgan's bullish stance. On December 18, J.P. Morgan reaffirmed its 'Buy' rating and set a $300 price target. This action signaled confidence in Duolingo's long-term growth prospects.
Conversely, the report also highlighted a more cautious view from DA Davidson. On December 3, DA Davidson maintained a 'Neutral' rating but trimmed its price target to $205 from $220. This adjustment followed a study of user activity which, despite showing steady gains and strong revenue momentum, lacked evidence that Duolingo could sustain user growth ahead of expectations.