This Artificial Intelligence (AI) Stock Could Fall by 13%, According to Wall Street -- but Here's Why I Refuse to Sell
The concerns surrounding Duolingo might be overblown.
Overview
I bought Duolingo (NASDAQ: DUOL) stock shortly after it fell to its 52-week low of $90.03 in April, which marked a staggering 83% decline from last year's record high of $540.68. It has since recovered to around $146.84 as of the market close on Monday, Aug. 24, and while I am very bullish on its prospects from here, Wall Street isn't convinced.
The 27 analysts covering the stock tracked by The Wall Street Journal have put an average price target of $127.07 on it, which suggests the stock could decline by around 13% over the next 12 months. Duolingo operates the world's largest digital language education platform, and Wall Street is concerned about management's plan to focus on user growth at the expense of monetization over the next couple of years, which could hurt the company's financial performance.
Details
However, if the strategy pays off, Duolingo's business could be in the strongest position in its history sometime around 2028. Here's why I plan to stick around to reap the potential rewards.
Source
Originally published at www.fool.com.
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