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APP vs. DUOL: Which Mobile-Tech Growth Stock Should You Consider Now?
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Key Takeaways
AppLovin is expanding beyond mobile into web and CTV, driving strong revenue.
APP posted Q3 revenues of $1.41B, up 68% year over year, with EBITDA margins above 82%.
Duolingo leverages AI and learner data to scale courses rapidly, supporting strong growth.
In the rapidly evolving mobile technology landscape, AppLovin (APP - Free Report) and Duolingo (DUOL - Free Report) have emerged as prominent growth-focused companies drawing strong investor interest. AppLovin capitalizes on its robust marketing and monetization platform to help mobile developers scale user acquisition and maximize in-app revenues, while Duolingo targets the expanding global demand for language learning through its innovative, app-driven education model.
While both companies offer attractive growth prospects, their distinct market positions, scalability dynamics, and revenue structures make it essential for investors to assess which stock currently presents the more compelling opportunity.
The Case for APP
AppLovin’s evolution from a mobile-first ad platform to a diversified advertising powerhouse is accelerating, supported by its expansion into web advertising and connected TV (CTV). A key catalyst behind this shift is the acquisition of Wurl, a streaming-focused content distribution and CTV monetization platform. Wurl enables AppLovin to extend its AI-driven AXON monetization engine beyond mobile apps and into high-growth areas such as smart TVs and streaming environments.
The CTV market continues to see rapid growth as viewers move away from linear television. Wurl’s infrastructure strengthens AppLovin’s ability to deliver targeted, measurable ad campaigns across CTV devices while complementing AXON’s predictive capabilities. Additionally, APP’s growing focus on performance-driven advertising, where measurable outcomes such as conversions take precedence over raw impressions, creates deeper value for advertisers across mobile, web and emerging channels.
As user attention disperses across devices, AppLovin is positioning itself to offer advertisers a more unified platform that spans mobile, web and CTV. This approach diversifies revenue streams and reduces reliance on any single platform, strengthening strategic resilience. If executed effectively, this multi-channel shift could elevate AppLovin into a formidable competitor within the broader omnichannel advertising ecosystem.
AppLovin’s third quarter showcased continued strength across its gaming advertising ecosystem and technology platforms. Revenues reached $1.41 billion, rising 68% year over year.
Adjusted EBITDA grew 79% to $1.16 billion, translating to an 82% margin. This reflected exceptional operational efficiency and scalability, with nearly all incremental revenue translating into higher profitability. Free cash flow soared 92% year over year to $1.05 billion, emphasizing the company’s ability to generate substantial cash from its operations, which, in turn, supports consistent capital returns to shareholders. During the quarter, the company repurchased and withheld approximately 1.3 million shares, valued at $571 million, which were funded entirely from free cash flow. Moreover, the board expanded the share repurchase authorization by an additional $3.2 billion, demonstrating confidence in the business’s financial durability and valuation.
Looking ahead, the company expects revenues between $1.57 billion and $1.6 billion in the fourth quarter, indicating 12% to 14% sequential growth. Adjusted EBITDA is projected to be between $1.29 billion and $1.32 billion, with margins expected to be in the 82% to 83% range. The guidance reflects continued optimism around recent model updates, expanding advertiser demand and seasonal strength during the holiday period.
The Case of DUOL
DUOL’s rise as a dominant player in digital education is deeply rooted in its effective use of artificial intelligence and proprietary learner data. Unlike many tech firms that view AI as a long-term aspiration, Duolingo integrates it at the core of its business model, from content creation to cost management, making it both a product and a financial growth driver.
With one of the world’s largest datasets of language learners, Duolingo leverages data to refine personalization, improve user engagement, and expand new learning verticals such as music and chess. This data advantage forms a strong competitive moat, enabling Duolingo to deliver adaptive learning experiences that are difficult for rivals to replicate. AI not only enhances learner outcomes but also drives significant operational efficiencies.
Equally impressive is Duolingo’s ability to scale content creation. In April, it introduced 148 new language courses, its largest expansion ever. For perspective, the company took more than a decade to develop its first 100 courses, but AI-driven tools now allow it to produce nearly 150 within a single year. This acceleration in content development reinforces its brand leadership and deepens user trust by consistently offering new learning opportunities.
In essence, Duolingo’s synergy of AI-driven personalization, proprietary data and cost-efficient scalability positions it as a transformative force in education technology. As global demand for accessible digital learning continues to expand, Duolingo’s sustainable growth model and innovation-led profitability make it an attractive long-term investment opportunity.
Duolingo's liquidity position is also robust, with a current ratio of 2.82 at the end of the third quarter of 2025 compared to the industry’s 1.58. A current ratio above 1 indicates that Duolingo is well-positioned to meet its short-term obligations, providing a buffer against potential financial challenges.
How Do Zacks Estimates Compare for APP & DUOL?
The Zacks Consensus Estimate for APP’s 2025 sales and EPS indicates year-over-year growth of 18% and 106%, respectively. EPS estimates have been trending upward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DUOL’s 2025 sales and EPS indicates year-over-year growth of 38% and 344%, respectively. EPS estimates have been trending upward over the past 60 days.
Image Source: Zacks Investment Research
DUOL’s Valuation More Attractive Than APP
APP is trading at a forward sales multiple of 32.35X, above its 12-month median of 21.4X. DUOL’s forward sales multiple stands at 6.88 times, below its median of 14.24 times.
DUOL Seems to Have the Edge
When valuation and earnings momentum are weighed together, Duolingo stands out as the more compelling opportunity. Despite delivering faster-than-expected earnings growth, the stock continues to trade at a relatively discounted valuation compared to its historical norms. This disconnect suggests that much of its long-term potential remains underappreciated by the market. Supported by a scalable, AI-driven model and expanding learning verticals, Duolingo combines growth visibility with balance sheet strength. While both stocks remain appropriate for a hold strategy, Duolingo’s undervaluation relative to its earnings trajectory positions it as the stronger winner today.
Image: Bigstock
APP vs. DUOL: Which Mobile-Tech Growth Stock Should You Consider Now?
Key Takeaways
In the rapidly evolving mobile technology landscape, AppLovin (APP - Free Report) and Duolingo (DUOL - Free Report) have emerged as prominent growth-focused companies drawing strong investor interest. AppLovin capitalizes on its robust marketing and monetization platform to help mobile developers scale user acquisition and maximize in-app revenues, while Duolingo targets the expanding global demand for language learning through its innovative, app-driven education model.
While both companies offer attractive growth prospects, their distinct market positions, scalability dynamics, and revenue structures make it essential for investors to assess which stock currently presents the more compelling opportunity.
The Case for APP
AppLovin’s evolution from a mobile-first ad platform to a diversified advertising powerhouse is accelerating, supported by its expansion into web advertising and connected TV (CTV). A key catalyst behind this shift is the acquisition of Wurl, a streaming-focused content distribution and CTV monetization platform. Wurl enables AppLovin to extend its AI-driven AXON monetization engine beyond mobile apps and into high-growth areas such as smart TVs and streaming environments.
The CTV market continues to see rapid growth as viewers move away from linear television. Wurl’s infrastructure strengthens AppLovin’s ability to deliver targeted, measurable ad campaigns across CTV devices while complementing AXON’s predictive capabilities. Additionally, APP’s growing focus on performance-driven advertising, where measurable outcomes such as conversions take precedence over raw impressions, creates deeper value for advertisers across mobile, web and emerging channels.
As user attention disperses across devices, AppLovin is positioning itself to offer advertisers a more unified platform that spans mobile, web and CTV. This approach diversifies revenue streams and reduces reliance on any single platform, strengthening strategic resilience. If executed effectively, this multi-channel shift could elevate AppLovin into a formidable competitor within the broader omnichannel advertising ecosystem.
AppLovin’s third quarter showcased continued strength across its gaming advertising ecosystem and technology platforms. Revenues reached $1.41 billion, rising 68% year over year.
Adjusted EBITDA grew 79% to $1.16 billion, translating to an 82% margin. This reflected exceptional operational efficiency and scalability, with nearly all incremental revenue translating into higher profitability. Free cash flow soared 92% year over year to $1.05 billion, emphasizing the company’s ability to generate substantial cash from its operations, which, in turn, supports consistent capital returns to shareholders. During the quarter, the company repurchased and withheld approximately 1.3 million shares, valued at $571 million, which were funded entirely from free cash flow. Moreover, the board expanded the share repurchase authorization by an additional $3.2 billion, demonstrating confidence in the business’s financial durability and valuation.
Looking ahead, the company expects revenues between $1.57 billion and $1.6 billion in the fourth quarter, indicating 12% to 14% sequential growth. Adjusted EBITDA is projected to be between $1.29 billion and $1.32 billion, with margins expected to be in the 82% to 83% range. The guidance reflects continued optimism around recent model updates, expanding advertiser demand and seasonal strength during the holiday period.
The Case of DUOL
DUOL’s rise as a dominant player in digital education is deeply rooted in its effective use of artificial intelligence and proprietary learner data. Unlike many tech firms that view AI as a long-term aspiration, Duolingo integrates it at the core of its business model, from content creation to cost management, making it both a product and a financial growth driver.
With one of the world’s largest datasets of language learners, Duolingo leverages data to refine personalization, improve user engagement, and expand new learning verticals such as music and chess. This data advantage forms a strong competitive moat, enabling Duolingo to deliver adaptive learning experiences that are difficult for rivals to replicate. AI not only enhances learner outcomes but also drives significant operational efficiencies.
Equally impressive is Duolingo’s ability to scale content creation. In April, it introduced 148 new language courses, its largest expansion ever. For perspective, the company took more than a decade to develop its first 100 courses, but AI-driven tools now allow it to produce nearly 150 within a single year. This acceleration in content development reinforces its brand leadership and deepens user trust by consistently offering new learning opportunities.
In essence, Duolingo’s synergy of AI-driven personalization, proprietary data and cost-efficient scalability positions it as a transformative force in education technology. As global demand for accessible digital learning continues to expand, Duolingo’s sustainable growth model and innovation-led profitability make it an attractive long-term investment opportunity.
Duolingo's liquidity position is also robust, with a current ratio of 2.82 at the end of the third quarter of 2025 compared to the industry’s 1.58. A current ratio above 1 indicates that Duolingo is well-positioned to meet its short-term obligations, providing a buffer against potential financial challenges.
How Do Zacks Estimates Compare for APP & DUOL?
The Zacks Consensus Estimate for APP’s 2025 sales and EPS indicates year-over-year growth of 18% and 106%, respectively. EPS estimates have been trending upward over the past 60 days.
The Zacks Consensus Estimate for DUOL’s 2025 sales and EPS indicates year-over-year growth of 38% and 344%, respectively. EPS estimates have been trending upward over the past 60 days.
DUOL’s Valuation More Attractive Than APP
APP is trading at a forward sales multiple of 32.35X, above its 12-month median of 21.4X. DUOL’s forward sales multiple stands at 6.88 times, below its median of 14.24 times.
DUOL Seems to Have the Edge
When valuation and earnings momentum are weighed together, Duolingo stands out as the more compelling opportunity. Despite delivering faster-than-expected earnings growth, the stock continues to trade at a relatively discounted valuation compared to its historical norms. This disconnect suggests that much of its long-term potential remains underappreciated by the market. Supported by a scalable, AI-driven model and expanding learning verticals, Duolingo combines growth visibility with balance sheet strength. While both stocks remain appropriate for a hold strategy, Duolingo’s undervaluation relative to its earnings trajectory positions it as the stronger winner today.
APP and DUOL sport a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.