Bullish Views on Duolingo (DUOL) Despite CFO Change

Duolingo Inc. (NASDAQ:DUOL) is one of the best software application stocks to buy according to Hedge Funds.

On January 13, Nathan Feather from Morgan Stanley reiterated an Overweight rating on Duolingo Inc. (NASDAQ:DUOL) shares. Although he lowered his price target from $300 to $275, his estimates still imply 78% upside.

Feather’s rating is part of Morgan Stanley’s broader view on the internet sector for 2026, which the firm believes will be “thematically similar” to 2025. Leveraging GenAI or GPU technologies will prove to be a critical factor. The firm believes that companies embracing these developments in pursuit of higher ROIC will garner investor attention.

KeyBanc analyst Justin Patterson maintained his Sector Weight rating on Duolingo Inc. (NASDAQ:DUOL), on January 13. His rating came at the back of the company’s announcement relating to the CFO change. The company anticipates a smooth transition, given the fact that the incoming CFO, Gillian Munson, has been a part of the board for many years.

Duolingo Inc. (NASDAQ:DUOL) operates a mobile learning platform, offering programs in 40 different languages. Their product development approach is heavily focused on AI capabilities, which helps them deliver a highly gamified and engaging learning experience. They cover a diverse range of areas, including music, mathematics, languages, and assessments.

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.

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