DUOL 21% Down but Strong Cash Backing and ONON Pre-Report Rally Potential

Travis Hoium
02-27

Duolingo trades near $4.6B market cap with $1.1B cash, giving ~12x adjusted EBITDA, highlighting long-term growth potential despite high SBC spend.

On Holding faces currency headwinds ahead of its earnings report but remains a top brand in the portfolio for compounding returns.

1. $Duolingo, Inc.(DUOL)$

Duolingo $DUOL has $1.1 billion in cash and if the ~21% drop holds would trade for about a $4.6 billion market cap.

That's an enterprise value of $3.5 billion, or 12x adjusted EBITDA.

This is still a growth company sacrificing short-term profitability for long-term growth!

My biggest problem right now is spending 15% of revenue on SBC.

2. $On Holding AG(ONON)$

My #2 holding in the Asymmetric Portfolio reports next week.

Expectation is for 22% revenue growth, hurt by a weak dollar/strong Swiss Franc.

I'm simply looking for compounding of one of the best brands in the world today.

PS：When you see a person/group very bullish on a stock, it's easy to brush it off as a "meme" or "crazy".

It's more profitable to ask yourself why they might be right.

The best investments often start with the "crazies" and "true believers".

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