Renowned language learning app Duolingo (DUOL) recently made its stock market debut, demonstrating strong investor sentiment as the stock surged by double-digits on its first day of trading. However, with negative profit margins, will DUOL be able to retain favorable market sentiment? Read more to find out.Popular language learning app Duolingo, Inc. (DUOL) made a stellar stock market debut on Nasdaq Stock Exchange on July 28. DUOL has approximately 40 million active users and 500 million downloads as the world’s most popular language-learning app. DUOL is based in Pittsburgh, Pa.
The company issued 3.70 million shares priced at $102 per share, which surpassed its initial $85-$95 price target. It raised $521 million through the IPO, indicating a $3.70 billion company valuation, which is 54.2% higher than its $2.40 billion private market valuation.
The stock opened at $141 on its first trading day, up 38.2% from its pre-listing price. In fact, DUOL gained 14.5% within the first week to hit its $152.84 all-time high on August 5.