Even though education company Duolingo (DUOL) had an impressive stock market debut in July 2021, it is currently trading 22.1% below its high since then. Let’s find out if it is wise to buy in the dip in the stock now.Language app company Duolingo, Inc. (DUOL) made its stock market debut on July 28, 2021, and soared nearly 35%, opening at $102 per share. It has approximately 40 million active users and 500 million app downloads. However, the stock has lost 11.2% over the past month to close yesterday’s trading session at $142.49. In addition, it is currently trading 22.1% below its all-time high of $205, which it hit on September 22, 2021.
The company’s losses widened in the second quarter, and it is expected to continue reporting losses in the upcoming quarters. Also, its trailing-12-month net income margin, ROTC, and ROA are negative compared to the industry averages of 6.29%, 7.56%, and 6.28%, respectively. So, DUOL’s near-term prospects look bleak.
Here’s what could shape DUOL’s performance in the upcoming months: