Duolingo shares soared 39% on its Nasdaq debut, but did the language app maintain its winning streak?
In the aftermath of the pandemic, Duolingo became a favorite among language and learning apps, earning a valuation of $ 6.5 billion on its Nasdaq debut.
This Wednesday, the language app Duolingo Inc. debuted on the Nasdaq Stock Exchange with a winning streak that took Wall Street by surprise. The company's shares opened at $ 141.40 each, meaning that on its first day they soared 39%. In addition to far exceeding its Initial Public Offering (IPO) price of $ 102 per share, Duolingo achieved a valuation of $ 6.5 billion .
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Initially, the language platform intended to sell shares at a price of between $ 85 and $ 95 each. Earlier this week, Duolingo upped the ante and raised its target price range to $ 95-100 per share . In the end, its IPO price was $ 102 per unit, but this estimate fell short of the stock's true debut price: $ 141.40, according to Nasdaq data.
After Selling about 5.1 million shares during the day, Duolingo raised nearly $ 521 million . However, about 1.4 million shares were sold by shareholders, so those profits will not go to the coffers of the company.
Although Duolingo had a winning debut, this Friday morning the company's shares fell to $ 130 , still well above the initial estimate. However, in a few hours and showed signs of recovery and at the close of this note it is hovering around $ 138 per share .
What is Duolingo?
Duolingo was founded in 2011 by the Guatemalan Luis von Ahn and the Swiss Severin Hacker , who met at Carnegie Mellon University. At the time, Luis was a computer science professor and Hacker was his PhD student.
Almost ten years later, the app exceeds the 500 million downloads , since offers courses in 40 languages to 40 million users monthly assets. In addition, it is positioned as the educational application that collects the most income both on Google Play and in the Apple App Store.
The high price of Doulingo Inc. in the stock market is an indicator of the boom of startups and educational technology companies, which emerged as a result of the confinements derived from the Covid-19 pandemic, when many people invested their new time free to learn languages.