ETFs with exposure to Duolingo
There are numerous exchange-traded funds (ETFs) that hold shares of Duolingo. If you want to gain exposure to Duolingo but wish to diversify your investment capital among a much broader group of investment holdings, an ETF could be the way to go.
Some ETFs to consider that contain shares of Duolingo include:
- iShares Core S&P Mid-Cap ETF (IJH -0.93%)
- Vanguard Total Stock Market ETF (VTI -0.59%)
- Vanguard Small-Cap Growth ETF (VBK -1.19%)
Will Duolingo stock split?
Duolingo has not had a stock split, and there are no announcements or indications of one planned in the near future. A company usually splits its stock when its share price becomes too high. The split can make it more accessible to a wider range of investors and increase liquidity.
The bottom line on Duolingo
As Duolingo grows, it could risk market saturation in developed countries where it's most dominant. The company needs to continue attracting users in new international markets to sustain its enviable track record of user growth.
While Duolingo uses AI, the same technology powers its potential disruptors. A user could theoretically use a generic AI chatbot like ChatGPT for language practice and circumvent the need for Duolingo's product. But Duolingo is proving, so far, that its AI-driven growth strategy can deliver strong operational bona fides and help maintain its powerful market position. Its freemium model creates a powerful flywheel, and the platform is building a consistent track record of profitability.
For investors with a durable buy-and-hold horizon and an appetite for growth stocks, Duolingo could certainly be a smart addition to a quality basket of buys.
