Why Duolingo Stock Sank Nearly 18% Last Month
Shares of app-based education company Duolingo (NASDAQ: DUOL) dropped 17.6% during July, according to data provided by S&P Global Market Intelligence. Without any news to excite investors, the stock drifted lower throughout the month. But that's already changing in August with the release of its latest quarterly earnings report.
The S&P 500 was up 1% during July so it may be surprising to some that this was its worst July in a decade. In short, market conditions weren't ideal for many stocks, including Duolingo. The company did acquire animation studio Hobbes early in the month for an undisclosed amount. But this news was hardly enough to keep shares from drifting lower while the market cooled off.
Things changed for Duolingo on Aug. 7 when it reported financial results for the second quarter of 2024. In short, the business is growing at an impressive rate and faster than expected. Moreover, management raised its full-year guidance. And this has the stock bouncing back.
Source Fool.com
