Two Growth Stocks To Consider

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Two Growth Stocks To Consider

Two Growth Stocks: Duolingo And Amazon

The Amazon (AMZN) and Duolingo (DUOL) are two big names in the tech sector. Both of these stocks have 'Strong Buy' ratings from multiple analysts, but some experts believe caution is needed.

Whether you believe it or not, both Amazon and Duolingo could be at risk because of the AI market in general. So, let's take a closer look at Duolingo and Amazon to find out if they are worth investing.

Duolingo (Duol)

ChatGPT 5 is leagues ahead of its predecessor and can easily help its users in learning new languages. In fact, many believe that ChatGPT can teach new languages in an interactive way.

Now, that's a good thing for the general public, but not so much for Duolingo. The core product of Duolingo was that it allowed users to learn new languages easily.

Also, the P/E ratio of Duolingo is around 132 right now, which is quite high. So with all the risks faced by Duolingo, it doesn't make sense to buy this stock at a P/E of 132.

In fact, even Duolingo knows about the risks and is now thinking about expanding into other areas. But until the company finds a new way to make money, it's best to stay away from it.

Amazon (Amzn)

Amazon (AMZN) also has a Strong Buy rating and is actually a much tougher contender than Duolingo. Why? Amazon has a very diversified business, which makes it less susceptible to AI.

But there's a good chance that some new AI product might end up challenging the market position of Amazon. But Amazon also knows this and is already integrating AI into its products/services.

Also, Amazon is pouring a lot of cash into the AI sector, which means it will be in a good position to benefit from it. But if the demand for cloud computing for AI goes down, it will also affect Amazon's bottom line.

So, if you have to choose between Amazon and Duolingo, then the most obvious winner is Amazon (AMZN).

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