Duolingo, Inc. (DUOL) Stock Sinks As Market Gains: Here's Why

Company Performance - Duolingo, Inc. (DUOL) closed at $316.38, reflecting a -0.72% change from the previous trading day's closing, underperforming compared to the S&P 500's daily gain of 0.16% [1] - The company's shares have decreased by 5.74% over the last month, which is worse than the Business Services sector's loss of 5.61% and the S&P 500's loss of 2.2% [1] Upcoming Earnings - Duolingo, Inc. is expected to report an EPS of$ 0.49, representing an increase of 88.46% from the prior-year quarter [2] - The consensus estimate for revenue is $204.66 million, which is up 35.54% from the prior-year quarter [2] Analyst Estimates - Recent adjustments to analyst estimates for Duolingo, Inc. indicate changing near-term business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [3] Zacks Rank and Valuation - The Zacks Rank system currently rates Duolingo, Inc. as 2 (Buy), with an average annual return of +25% for 1 stocks since 1988 [5] - The Forward P/E ratio for Duolingo, Inc. is 104.54, significantly higher than the industry average of 23.65, indicating that the company is trading at a premium [6] Industry Context - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 75, placing it in the top 30% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]