Durable Capital Partners LP (Trades, Portfolio), a prominent investment firm, has recently reduced its stake in Duolingo Inc. The transaction, which took place on October 2, 2023, saw the firm offload 9,974 shares at a price of $168.13 per share. This article aims to provide an in-depth analysis of this transaction, the investment philosophy of Durable Capital Partners LP (Trades, Portfolio), and the financial health and performance of Duolingo Inc.
About Durable Capital Partners LP (Trades, Portfolio)
Durable Capital Partners LP (Trades, Portfolio) is a renowned investment firm based at 5425 Wisconsin Avenue Suite #802, Chevy Chase, MD 20815. The firm manages a portfolio of 50 stocks, with a total equity of $11.4 billion. Its top holdings include FirstService Corp (FSV, Financial), Intuit Inc (INTU, Financial), HubSpot Inc (HUBS, Financial), Roper Technologies Inc (ROP, Financial), and Duolingo Inc (DUOL, Financial). The firm's primary investment sectors are technology and healthcare. 
Transaction Overview
The transaction saw Durable Capital Partners LP (Trades, Portfolio) reduce its stake in Duolingo Inc by 0.26%, impacting the firm's portfolio by -0.01%. Following the transaction, the firm holds 3,834,323 shares in Duolingo Inc, representing 5.66% of its portfolio and 9.23% of Duolingo Inc's total shares.
Durable Capital Partners LP (Trades, Portfolio)'s Investment Philosophy
Durable Capital Partners LP (Trades, Portfolio)'s investment philosophy is centered around identifying and investing in companies with durable competitive advantages and strong growth prospects. The firm's portfolio is diversified across various sectors, with a significant focus on technology and healthcare.
About Duolingo Inc
Duolingo Inc, a US-based technology company, is known for its mobile learning platform that enables users to learn various languages. The company's products, powered by sophisticated data analytics and artificial intelligence, are designed to motivate learners and help them achieve their learning goals. Duolingo Inc's revenue streams include time-based subscriptions, in-app advertising, and the Duolingo English Test. The company, which went public on July 28, 2021, has a market capitalization of $6.78 billion. 
Duolingo Inc's Financial Health and Performance
As of October 5, 2023, Duolingo Inc's financial health is rated 8/10 on the Financial Strength scale, while its Profitability Rank stands at 2/10. The company's Growth Rank is currently not applicable due to insufficient data. Duolingo Inc's Piotroski F-Score is 5, indicating a stable financial situation. The company's Altman Z score is 18.18, suggesting low bankruptcy risk.
Duolingo Inc's Stock Momentum and Industry Position
Duolingo Inc's stock momentum is currently not applicable due to insufficient data. The company's cash to debt ratio is 24.82, ranking 698th in the software industry. Duolingo Inc's return on equity (ROE) and return on assets (ROA) are -5.65 and -4.12, respectively, placing the company at 1667th and 1731st positions in the industry.
Conclusion
In conclusion, Durable Capital Partners LP (Trades, Portfolio)'s recent transaction has slightly reduced its exposure to Duolingo Inc. Despite the reduction, Duolingo Inc remains a significant holding for the firm, representing 5.66% of its portfolio. The transaction's impact on Duolingo Inc's stock and Durable Capital Partners LP (Trades, Portfolio)'s portfolio will be closely monitored in the coming months.
