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We are now more than the middle of the road until 2025, and it turns into a wonderful year for the self -invested personal pension portfolio (SIPP). As I write, it is both comfortable both FTSE 100 and S & P 500.
This is very encouraging to see because I run a very narrow ship, with less than 20 stocks in this wallet. On the contrary, if there are not a few basic holdings well, it is likely that my SIPP is weak. This happened greatly in 2022.
However, most stocks rise in double numbers this year. Here are the five largest SIPP holders.
| Perform a year to date | |
|---|---|
| Axon Enterprise | +37 % |
| Mercadolber | +36 % |
| Shopify | +40 % |
| Uber | +50 % |
| Duolingo (Nasdaq: duol) | +3 % |
A strong quarter
As we see, the Duolingo language learning platform shares rise only 3 %. But they have achieved much better for one year (+80 %).
However, heading to the Q2 profit report last week, you were somewhat worried. Some analysts had reduced the stock because applications tracking data indicate a slowdown in Duolingo downloads.
However, the quarterly participation numbers were strong. Daily active users (DAU) increased by 40 % year on an annual basis to 47.7 million, with the subscribers paid 37 % increased to 10.9 million. This is very impressive given that the company was clicking on 60 % growth in Daus last year (and the previous year).
Most of Duolingo’s revenues come from subscriptions, and the rest of the ads. Q2 revenues jumped by 41 % to $ 252.3 million, while modified Ebitda increased by 64 % to $ 78.7. These numbers were 4.8 % and 28.8 % higher than analysts who were expecting.
CEO Louis von Ahn said: “We believe that we are still early on our user’s growth journey. We have made innovation with an increase in profitability. ”
The company now expects that the entire year will be about $ 1.15 billion (about 32 % of growth on an annual basis).
Now, there was a violent reaction to social media after Duolingo announced in March that it had become.AI First CompanyYouth, especially in the United States, they saw this because with coldness, most human employees replace Amnesty International.
The administration said that the appropriate context was lost in translation. But another catastrophe like this is a danger, as it may delete the Duolingo app.
Also, new competitors working for artificial intelligence can appear, making improved large -slim -limited sword.
Should I be tense?
Another thing I feel is that many of the growth shares I carry are highly estimated after their strong periods. The market will decline in cards at some point this year.
Duolingo is traded with 11 times sales forward and 37 times from Ebitda (both for 2026). So there are potential risk of evaluation if growth suddenly slows down.
He took a five -year view, however, I am very optimistic. Duolingo’s fastest market is China, where English learners hold 400 meters. Asia as a whole is the company’s upper growth area.
Duolingo has 128 million active users per month, compared to 2 billion people learn languages all over the world. In addition, its courses in music, mathematics and chess can be invested in the future.
Additional courses may even become a super digital application. Although he was not guaranteed, this is an exciting possibility, especially given the maximum humble market of the company with a value of $ 15 billion.
For investors who have long -term expectations (from five to 10 years), I think the stock is worth thinking, despite the high evaluation. I will continue to carry this on the long -term DIY pension and I expect to take out any fluctuations in the upcoming stock market.
