Duolingo's powerful growth momentum can drive the stock even higher

In partnership with

We put your money to work

Betterment’s financial experts and automated investing technology are working behind the scenes to make your money hustle while you do whatever you want.

Learn more

Sometimes being contrarian pays off, but other times it leads to missed opportunities. For example, many investors often avoid high-priced stocks for fear of overpaying. However, this might be a wrong investment strategy as expensive stocks often rise significantly over the long run, which is why they get expensive. The parent company of the language learning app Duolingo ($DUOL), is a great example.

As we’ll see, Duolingo’s valuation is quite expensive, and many analysts have recommended selling the stock on valuation fears. But despite its premium valuation, the company has proved the naysayers wrong. As you can see below, the stock has been hitting new highs nearly every day over the past month. It’s now up 53% YTD, beating the market by a wide margin.

Duolingo’s most recent earnings reaffirmed the company’s powerful growth momentum, sending the stock to new highs. And this upward trend is likely to continue as Duolingo’s business is firing on all cylinders thanks to AI and its rapidly growing user base.

Subscribe to Premium Membership to read the rest.