Monday’s Headlines: Duolingo Can’t Be Stopped

Monday’s Headlines: Duolingo Can’t Be Stopped

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Duolingo (DUOL) +34.0%

Sea Limited (SE) +22.7%

StoneCo (STNE) +20.1% (BILL) +18.6%

nCino (NCNO) +17.8%

Moving Down ⬇️

Twitter (TWTR) -9.7%

Nautilus (NLS) -6.4%

Cognizant Technology Solutions (CTSH) -0.2%

Activision Blizzard (ATVI) +0.5%

Berkshire Hathaway (BRK.B) +0.7%

1. Duolingo (DUOL) saw its share price spike by 34% on Friday following a wildly successful first-quarter earnings call. The language-learning app surpassed all expectations and even offered an improved outlook for the remainder of the year — something ardent followers of the market will know to be very hard to find of late. The company posted an adjusted loss per share of only $0.31 against an expected loss of $0.57, on revenue of $81.2 million against predictions of $77.6 million. Co-founder and CEO, Luis von Ahn, explained that “all elements of our business performed well this quarter and we saw accelerating user growth, record quarterly bookings, and strong margins. We believe these results come from the investments we’ve made in R&D to drive innovation and continuously make our products more effective, more fun, more engaging, and more social.” You can find out more here.

2. Twitter (TWTR) stock slid by as much as 18% at one point early on Friday following another shock announcement from proposed suitor Elon Musk. The social media platform ended the day down almost 10% following the revelation that Musk’s takeover bid is definitively on hold until further clarity can be found on the total number of fake accounts currently on the site. Twitter had, up until now, been avoiding some of the widespread tech sell-off, but this new revelation could damage the stock significantly. Rumors had already been swirling around Wall Street of Elon getting cold feet on the deal. Our financial analyst, Michael O’Mahony, even speculated that Elon could be ruing his timing. “Even with a $1 billion break-up fee incurred if he walks away, Musk could easily get a better deal if he leaves the table now and comes back with a new offer.” To hear the rest of Mike’s thoughts on the matter, click here.

3. News emerged on Friday that cloud-computing company Salesforce (CRM) has sold-off all of its shares in data-analytics software producer Snowflake. Salesforce originally bought $250 million worth of shares in the firm following its illustrious IPO in late 2020, before selling off all but 5% toward the end of last year. While Salesforce has so far declined to comment on the sale, this could be seen as a damning indictment of Snowflake’s future prospects, with its stock already down close to 53% year-to-date. For Salesforce shareholders, this should be seen as a solid piece of business. The sale in 2021 granted the company a handsome profit — with Snowflake trading well above its IPO price at the time. Exiting the rest of its position now saves Salesforce from any potential major losses similar to those experienced by companies such as Amazon (AMZN) or Shopify (SHOP) — both of which posted losses of over $1 billion from equity investments this quarter. Read more here.

Pádraig BolgerPádraig Bolger