Duolingo gets an A+ in its IPOLanguage learning company Duolingo smashes its first day of class, making its debut on the Nasdaq and closing 36% above its IPO price.
While Chinese education stocks lick their wounds after a government crackdown, the U.S. education market is celebrating Duolingo’s successful IPO. Duolingo kept many a person busy during the pandemic and the online education company saw a huge spike in traffic as people tried to occupy their minds while stuck indoors. Now it’s reaping the rewards. After initially targeting a range of $85 to $95, Duolingo priced its shares at $102 per share, opening at $141.40 before popping to $145 and closing up 36% from its IPO price at $139. The platform notched a valuation of $6.5 billion compared to the $3.41 billion it was hoping for and significantly higher than the $2.4 billion valuation it got last September – talk about an A+.
There has been a surge in investor interest in consumer edtech recently. In 2020, education start-ups in the U.S. raised more than $2.2 billion in private equity and venture capital, up nearly 30% from the $1.7 billion that was invested in the sector in 2019. Duolingo’s success points to a positive future for that industry.
said co-founder and chief executive officer of Duolingoz, Luis von Ahn.
The stock slipped slightly on Thursday to close just over 3% down.