A smartphone with the Duolingo app displayed is placed on the keyboard in this illustration taken on June 29, 2021. REUTERS / Dado Ruvic / Illustration
NEW YORK, July 26 (Reuters Breakingviews) – ³CÃmo se dice â ???? overvaluedâ ????? Language learning app Duolingo raised the price of its initial public offering to $ 100 per share, an 18% increase from the low point of its previous range. The company, which more than doubled its sales last year, could now be worth as much as $ 3.6 billion not counting stock options, a 50% jump from its last fundraising in November. . It’s crazier than it looks.
The S&P 500 Index has risen about a quarter since Duolingo’s last fundraiser, although some tech-type companies that have benefited from the lockdowns have not done as well. Zoom Video Communicationsâ € ™ Online Meeting Platform The valuation of (ZM.O) has fallen since last fall, while stock in food delivery company DoorDashâ € ™ s (DASH.N) is at its IPO price from of December.
Some habits have remained learning more, and the simplicity of learning a language with the swipe of a finger could be too. Despite this, Duolingo is aiming for an enterprise value equivalent to more than 20 times last year’s sales, nearly quadruple the multiple of the music app Spotify Technology (SPOT.N). Expenses â ???? and losses â ???? are going in the right direction. But like many language learners, the company might overestimate its potential. (By Lauren Silva Laughlin)
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Big US tech companies can look themselves in the mirror for their next acquisition. Alphabet (GOOGL.O), Amazon.com (AMZN.O), Apple (AAPL.O), Facebook (FB.O) and Microsoft (MSFT.O) have a total of around $ 600 billion in cash. With revenues reaching new highs, investors will be eager to see them work. Repurchasing more shares may become the default.
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