On August 13, Duolingo, Inc. rose 5.21% in regular trading, trading at $141.7 per share, with turnover of approximately $84.87 million. The stock gained momentum following the company's announcement of its acquisition of London-based animation studio Animade.
Duolingo disclosed the acquisition of award-winning UK animation studio Animade, with the team set to join Duolingo's internal Design Studio. Financial terms were not disclosed. The acquisition is aimed at expanding the company's world-class motion design capabilities to build more engaging learning experiences. Given Duolingo's reliance on gamified, character-driven interactions to attract and retain users, the deal is expected to strengthen its differentiated product offering and accelerate creative iteration.
The move comes shortly after Duolingo appointed former Citigroup CFO Sallie Krawcheck to its Board of Directors on August 10, and after UBS raised its price target on the stock to $150 from $125, maintaining a Buy rating following Q2 results that beat consensus on both EPS ($0.66 vs. $0.61 estimate) and revenue ($298.5M vs. $295.6M estimate).
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