Duolingo and Kyndryl: Undervalued Tech Stock Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Fool
- User Growth Potential: Duolingo reported 128 million monthly active users in Q3 2025, achieving $272 million in revenue and $70 million in adjusted net income, indicating strong market potential in the edtech sector despite most users being on the ad-supported free version.
- Cash Flow Performance: Duolingo's free cash flow reached $77.4 million, as the company prioritizes user growth over short-term profits, a strategy that may attract more users and enhance brand loyalty, driving long-term growth.
- Kyndryl's Transformation: Kyndryl's hyperscaler revenue doubled over the past year, with adjusted EBITDA margins rising from 14.1% to 17.2%, showcasing robust growth potential in cloud computing and AI, even as its stock price has fallen 37% in the past six months.
- Market Undervaluation: Kyndryl's price-to-earnings ratio stands at 14.4 and forward P/E at 6.8, reflecting market neglect of its potential value, despite actively shedding low-margin legacy contracts and pivoting to higher-value work, which could attract more investor interest in the future.
Analyst Views on DUOL
Wall Street analysts forecast DUOL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DUOL is 260.36 USD with a low forecast of 160.00 USD and a high forecast of 330.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
6 Hold
1 Sell
Moderate Buy
Current: 151.560
Low
160.00
Averages
260.36
High
330.00
Current: 151.560
Low
160.00
Averages
260.36
High
330.00
About DUOL
Duolingo, Inc. is a technology company. The Company is engaged in offering a mobile learning platform, as well as a digital English language proficiency assessment exam. It operates a freemium business model, namely, the app and the Website are accessible free of charge, although Duolingo also offers premium services for a subscription fee. Its solutions consist of the Duolingo App, Super Duolingo, Duolingo Max, Duolingo English Test: AI-Driven Language Assessment, Duolingo for Schools, and Duolingo ABC. The Duolingo App offers courses in over 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese and Chinese. Duolingo can also be accessed on desktop computers via a Web browser. Its subscription offering, Super Duolingo, offers learners additional features to enhance their learning experience. The Duolingo English Test is an online, on-demand, high-stakes English proficiency assessment. It also operates an animation and motion design studio.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
