2 Growth Stocks That Are Screaming Buy in the 2024 Bull Market

The new bull market has sparked renewed interest in investing. While rapidly rising stock prices may make you wary of investing at the wrong time, you can find good companies in any market environment, especially if you invest with a long-term view.

If you’re currently looking for attractive companies that look like compelling investments, here are two top stocks to consider for your portfolio.

1. Duolingo

Duolingo (NASDAQ:DUOL) has capitalized on the size of the language learning market by offering dozens of courses to millions of users around the world via a vast platform. The company focuses on helping language learners with personalized lessons and interactive exercises, which they can complete anywhere and at their own pace.

In this process, Duolingo leverages artificial intelligence, machine learningand data analytics to track each individual’s learning journey and tweak lessons to ensure they’re getting the right content for them. The company operates on a freemium model, meaning anyone can access learning content on Duolingo for free, but additional features and benefits require a subscription.

Based on this model, the company generates revenue through advertising, subscription fees and in-app purchases. She also makes money from her Duolingo English test, which has been adopted by thousands of higher education programs across the country, including Yale, Columbia, Duke and Stanford, as proof of English proficiency.

Additionally, learners tend to stick with the app for months or even years. They can use the free experience for a long time before becoming paid users. This flexible model allows Duolingo to capture all types of learners, regardless of their budgets and learning goals, for a large total addressable market (TAM). Management estimates that its TAM is in the order of 2 billion people.

In the first quarter, Duolingo saw total bookings of $197.5 million, up 41% year-over-year, while subscription bookings increased 47% to $161.5 million. of dollars. It also had 7.4 million paying subscribers at the end of the quarter, up 54% year-over-year. The total number of daily active users also jumped 54% to 31.4 million.

Duolingo reported net income of $27.0 million on total revenue of $167.6 million. This final figure represents a notable improvement from a loss of $2.6 million a year ago, while revenue increased by 45%. Importantly, the company is also cash flow positive, with operating cash flow and free cash flow coming in at $83.5 million and $79.6 million, respectively, for the quarter.

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While advertisers might cut spending and users might be more hesitant to pay for subscriptions in tough economic environments, Duolingo’s asset-light freemium model allows it to tap into a range of revenue streams.

Duolingo stock has gained about 50% over the past year. For investors looking for a high-growth stock, consider this dominant player in the multibillion-dollar language learning market.

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