Jim Cramer Says Duolingo is "Too Good a Company to Short"

Duolingo, Inc. (NASDAQ:DUOL) is one of the stocks Jim Cramer put under the microscope. A caller asked Cramer whether the stock, despite recently beating earnings estimates, might be a strong short candidate over the next 12 months due to rising AI competition, user dissatisfaction, and Apple’s new live translation feature integrated with AirPods 3. In response, he said:

“Whoa, whoa. No. It’s too good a company to short. I would sell it because I do like what Apple’s come up [with] in terms of translation. I go overseas quite a bit, do a lot of business, particularly my wife does, and we just need the buds now. That’s all we need. We don’t need the Duolingo. We tried [it]… It’s really hard. But anyway, that’s my thinking.”

Duolingo, Inc. (NASDAQ:DUOL) operates a mobile learning platform. It provides courses in dozens of languages. In addition, the company provides digital English proficiency assessment through its app.

While we acknowledge the potential of DUOL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.