Duolingo, despite its growth, faces significant challenges including decelerating user growth and increasing cyclicality risks. The stock's current valuation at 15x sales seems high when compared to more stable software models, given Duolingo's potentially higher churn rates. Future growth is expected to slow, which could lead to further compression of its valuation multiples. Therefore, the stock appears overvalued, prompting a sell rating and a recommendation for investors to explore other opportunities.
JPMorgan Chase & Co. continues to demonstrate strong financial performance, with notable Q2 results supporting both common and preferred stock dividends. Despite the bank's premium valuation at roughly 15 times its projected earnings, the author has divested common shares to pursue alternative investment opportunities. The preferred shares, specifically JPM.PR.L, are favored over JPM.PR.D due to reduced call risk and the potential for capital appreciation if interest rates decline. The author maintains a positive outlook on JPMorgan's preferred stock, anticipating enhanced returns in a lower interest rate environment, while deeming a "sell" rating for common shares as overly severe.
