Movement Alert|Duolingo, Inc. Rises 5.13% in Regular Trading, Evercore ISI Upgrade and ChatGPT Competition Reassessment Boost Sentiment

Market Focus09-14 23:40

On September 14, Duolingo, Inc. rose 5.13% in regular trading, trading at $151.25/share, with turnover of $53.76 million. The stock led gains among AI application software names during the session.

The rally was driven by continued positive sentiment following Evercore ISI's upgrade of the stock from In Line to Outperform, with a target price sharply raised to $210 from $105. The firm's core thesis is that the market has excessively amplified the competitive threat posed by ChatGPT to Duolingo's business. Proprietary survey data from Evercore ISI showed that over 63% of ChatGPT language learning users are also Duolingo daily active users, with engagement levels on par with core users, suggesting the two platforms are more complementary than competitive.

The upgrade adds to a string of bullish analyst actions in recent weeks, including D.A. Davidson's upgrade to Buy with a $160 target, JPMorgan raising its target to $135, Wedbush lifting its target to $150, and UBS maintaining a Buy rating with a $150 target. Duolingo also recently acquired UK animation studio Animade to strengthen its product design capabilities.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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