These rapidly growing businesses are on the right track for success. The recent bull market has sparked interest in investing, but it’s important to choose wisely when considering where to invest your money. Two top stocks to consider for your portfolio are Duolingo and Toast.
Duolingo has tapped into the language learning market by offering personalized lessons and interactive exercises to millions of users worldwide. The company uses artificial intelligence and data analytics to tailor lessons to each individual’s learning journey. With a freemium model, Duolingo generates revenue from advertising, subscription fees, and in-app purchases. In the first quarter, Duolingo reported strong financial results, with total bookings up 41% year over year and 7.4 million paid subscribers. With a significant total addressable market of 2 billion people, Duolingo is a dominant player in the language learning market.
Toast is a cloud-based technology platform for restaurants, offering services to help manage operations from delivery and takeout to payroll and inventory. Revenue comes from service subscriptions, hardware sales, and financial technology solutions. In the first quarter, Toast reported a 31% increase in revenue year over year and processed $34.7 billion in gross payment volume. While operating at a loss, Toast generated $125 million in free cash flow over the past year. With its platform serving 112,000 locations, Toast is a leader in the industry and a promising long-term investment.
Both Duolingo and Toast have seen stock growth over the past year and are positioned for continued success in their respective markets. Investors looking for top growth stocks should consider these companies for their portfolios.