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Why I'm Not Buying Duolingo Stock (Yet)

The creator discusses Duolingo's strategy of prioritizing customer acquisition over profitability, which may impact margins but could drive user growth. Despite a significant stock price recovery, the valuation appears reasonable, with a forward P/E near historical lows and a DCF valuation suggesting it's fairly valued or slightly undervalued. The creator is not buying yet due to the inherent risks but acknowledges the attractive risk/reward profile.

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DUOLNeutralMedium ConvictionSignal-backedPrimary

Duolingo's stock is trading at a reasonable valuation near historical lows, making it appear slightly undervalued despite risks, but the creator is holding off on buying for now.

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