Duolingo (NASDAQ: Duol) is an arrow of growth I own in both the ISA, ISA shares and self -investing personal pension portfolios (SIPP). However, both positions have now crashed 43 % since May, as it has made paper gains that they created.

But instead of panic, this gives me an opportunity to raise more shares at a lower price.

Google risks

Duolingo is the most popular language learning application in the world. When I thought about the arrow for the first time, I questioned whether the company had a solid competitive advantage. I have seen education technology shares to create deception over the years, including Irritation and Corsira.

Currently, investors are concerned that Google Translate has stopped its tanks on the Duolingo Park by launching artificial intelligence mode (AI). After using it last week, I think it is very impressive, especially for the tool that is still in a trial test.

For example, I can create my training scenarios in Spanish, such as suggesting dinner plans or interviewing a partner family. Duolingo lessons have limited freedom to choose scenarios. I don't know if this is good (more structure) or bad (not customization).

Language learners will not have a great reason to go to Google translating whether Duolingo has offered a similar translation tool. But this is not, and this gap allows a dangerous potential competitor.

The ship jumped very early

In 2011, Google Google+, a social media platform aimed at competing with Facebook. I quietly closed this in 2019, soon Tiktok appeared from nothing.

Anyone who threw Facebook shares on these competitive concerns would have lost great gains. shares Definition platforms – The company is now called – increased by 180 % in five years and 715 % over a decade.

It is a similar story with Netflix. A serious competition for the first time arrived in the form Amazon Main video, then Disney+ Other broadcast services. However, despite this competition, Netflix remained common as it has always been 1000 % increase in a decade.

Google owner alphabetAnother interesting example. Investors who sold a year ago due to the perceived threat from ChatgPT, the share price increased by 60 %.

It is clear that abandoning high -quality growth stocks very early can be a serious mistake.

Nothing really changed

This does not mean that Duolingo will not be disrupted by Google Translate or some AI applications such as ChatGPT. I think this is a possible danger.

But these virtual competitive dangers do not change the issue of investment for me. I have not yet seen any weakness in the main (impressive) growth standards.

Only last month, the company stated that daily active users Q2 jumped by 40 % year on an annual basis to 47.7 million. Revenue increased by 41 % to $ 252.3 million, while paid subscribers increased by 37 % to 10.9 million.

Meanwhile, net income increased by 84 % to 44.8 million dollars, despite the continuous heavy investment of growth. Duolingo is now sports 37 % free cash flow margin.

Finally, the entire year's reservations were raised to about $ 1.15 billion (32 % growth).

We believe that we are still early on our user's growth journey. We have presented innovation during the increasing profitability.

The CEO of Duolingo Louis von Ahn.

Depending on the revenues of the expectations next year, the price ratio to sales forward 11 is not completely cheap. But for me, nothing has really changed here, except that stocks suddenly are 43 % cheaper.

As such, I will buy more shares soon.