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