Buy 2 AI-Powered Technology Services Stocks to Tap Lucrative Upside
The Zacks-defined Technology Services industry currently ranks within the top 16% of Zacks Ranked Industries. Consequently, we expect it to outperform the market over the next three to six months. We recommend two artificial intelligence (AI)-powered technology services bigwigs with a top Zacks Rank and solid price upside in the short term.
These two stocks are: AppLovin Corp. APP and Duolingo Inc. DUOL. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Technology Services Industry Thriving
The global shift toward digitization creates opportunities in various markets, including 5G, blockchain and AI. Companies are adopting generative AI, machine language (ML), blockchain and data science faster to gain a competitive advantage.
The business software industry is gaining from robust demand for multi-cloud-enabled software solutions, given the ongoing transition from legacy platforms to modern cloud-based infrastructure.
Industry players are incorporating AI and ML into their applications to achieve more dynamic and result-oriented outcomes. Elevated demand for enterprise software, which is ramping up productivity and improving the decision-making process, is a key catalyst.
AppLovin Corp.
Zacks Rank #1 AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin's last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of APP's AI-powered AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth. APP's AI-enabled Audience+ marketing platform is also increasing its reach into the direct-to-consumer and e-commerce space.
Huge Price Upside Potential for APP Shares
The average short-term price target of brokerage firms represents an increase of 37% from the last closing price of $341.64. The brokerage target price is currently in the range of $200-$650. This indicates a maximum upside of 90.3% and a downside of 41.5%.
AppLovin has an expected revenue and earnings growth rate of 16% and 84.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last seven days.
Duolingo Inc.
Zacks Rank #2 Duolingo operates as a mobile learning platform in the United States, China, the United Kingdom, and internationally. DUOL offers courses in 40 different languages through the Duolingo app. Moreover, DUOL provides a digital language proficiency assessment exam.
Duolingo utilizes several AI applications to personalize and automate learning process, error analyzing and content creation. Its Birdbrain AI system analyze real-time user performance. DUOL uses OpenAI's large language models for content creation.
Solid Price Upside Potential for DUOL Stock
The average short-term price target of brokerage firms represents an increase of 24% from the last closing price of $391.86. The brokerage target price is currently in the range of $375-$600. This indicates a maximum upside of 53.1% and a downside of 4.3%.
DUOL has an expected revenue and earnings growth rate of 33.5% and 54.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.1% over the last 60 days.
Image Source: Zacks Investment Research
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AppLovin Corporation (APP): Free Stock Analysis Report
Duolingo, Inc. (DUOL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
23 minutes ago
- CTV News
Winnipeggers high-five to celebrate reopening of Portage and Main
Winnipeggers are seen high-fiving as they cross Portage and Main on July 8, 2025. (Jamie Dowsett/CTV news) Winnipeggers put their hands in the air in a show of excitement for the reopening of Portage and Main. On Tuesday, Downtown Winnipeg BIZ celebrated the famous intersection with a coordinated crossing where attendees high-fived as they passed each other. Olivia Billson, director of marketing, engagement and communications with Downtown Winnipeg BIZ, said the event was all about community, connection and culture. 'Modern cities don't have barriers for people to get across an intersection, to go on the other side of the street to explore what's happening,' she said. Portage and Main reopened to foot traffic last month after a 46-year closure.
CTV News
23 minutes ago
- CTV News
Trump's previous tariffs terrified the world economy. He's betting this time is different
WASHINGTON — When U.S. President Donald Trump last rolled out tariffs this high, financial markets quaked, consumer confidence crashed and his popularity plunged. Only three months later, he's betting this time is different. In his new round of tariffs being announced this week, Trump is essentially tethering the entire world economy to his instinctual belief that import taxes will deliver factory jobs and stronger growth in the U.S., rather than the inflation and slowdown predicted by many economists. On Tuesday, he told his Cabinet that past presidents who hadn't aggressively deployed tariffs were 'stupid.' Ever the salesman, Trump added that it was 'too time-consuming' to try to negotiate trade deals with the rest of the world, so it was just easier to send them letters, as he's doing this week, that list the tariff rates on their goods. The letters marked a change from his self-proclaimed April 2 'Liberation Day' event at the White House, where he had posterboards with the rates displayed, a choice that led to a brief market meltdown and the 90-day negotiating period with baseline 10% tariffs that will end Wednesday. Trump, instead, chose to send form letters with random capitalizations and punctuation and other formatting issues. 'It's a better way,' Trump said of his letters. 'It's a more powerful way. And we send them a letter. You read the letter. I think it was well crafted. And, mostly it's just a little number in there: You'll pay 25%, 35%. We have some of at 60, 70.' When Trump said those words, he had yet to issue a letter with a tariff rate higher than 40%, which he levied Monday on Laos and Myanmar. He plans to put 25% tariffs on Japan and South Korea, two major trading partners and allies deemed crucial for curbing China's economic influence. Leaders of the 14 countries tariffed so far hope to negotiate over the next three weeks before the higher rates are charged on imports. 'I would say that every case I'm treating them better than they treated us over the years,' Trump said. Three possible outcomes His approach is at odds with how major trade agreements have been produced over the last half-century, detailed sessions that could sometimes take years to solve complex differences between nations. There are three possible outcomes to this political and economic wager, each of which could drastically reshape international affairs and Trump's legacy. Trump could prove most economic experts wrong and the tariffs could deliver growth as promised. Or he could retreat again on tariffs before their Aug. 1 start in a repeat of the 'Trump Always Chickens Out' phenomenon, also known as TACO. Or he could damage the economy in ways that could boomerang against the communities that helped return him to the White House last year, as well as hurt countries that are put at a financial disadvantage by the tariffs. Sen. Ron Wyden, D-Ore., said Trump's letters had 'extended his tariff purgatory for another month,' essentially freezing in place the U.S. economy as CEOs, foreign leaders and consumers are unclear of Trump's actual strategy on foreign trade. 'The TACO negotiating tactic pioneered by Trump is making his threats less and less credible and reducing our trading partners' willingness to even meet us halfway,' Wyden said. 'There's no sign that he's any closer to striking durable trade deals that would actually help American workers and businesses.' So far, the stock and bond markets are relatively calm, with the S&P 500 stock index essentially flat Tuesday after a Monday decline. Trump is coming off a legislative win with his multitrillion-dollar income tax cuts. And he's confidently levying tariffs at levels that previously rocked global markets, buoyed by the fact that inflation has eased so far instead of accelerating as many economists and Democratic rivals had warned. 'By floating tariffs as high as 40% to even 100%, the administration has 'normalized' the 25% tariff hikes — yet this is still one of the most aggressive and disruptive tariff moves in modern history," said Wendong Zhang, an economist at Cornell University. 'This gradual unveiling, paradoxically, risks normalizing what would otherwise be considered exceptionally large tariff hikes.' Questions about how much money tariffs will generate With Trump's 90-day tariff negotiation period ending, he has so far sent letters to 14 countries that place taxes on imported goods ranging from 25% to 40%. He said he would sign an order Tuesday to place 50% tariffs on copper and said at the Cabinet meeting that at some point pharmaceutical drugs could face tariffs of as much as 200%. All of that is on top of his existing 50% tariffs on steel and aluminum, 25% tariffs on autos and his separate import taxes on Canada, Mexico and China. 'The obvious inference is that markets for now are somewhat skeptical that Trump will go through with it, or alternatively they think compromises will be reached,' said Ben May, a director of global economic research at the consultancy Oxford Economics. 'That's probably the key element.' May said the tariffs are likely to reduce the growth in U.S. household incomes, but not cause those incomes to shrink outright. Trump has said his tariffs would close U.S. trade imbalances, though it's unclear why he would target nations such as Tunisia that do relatively little trade with America. Administration officials say trillions of dollars in tariff revenues over the next decade would help offset the revenue losses from the continuation and expansion of his 2017 tax cuts that were signed into law Friday. The federal government has collected US$98.2 billion in tariff revenues so far this year, more than double what it collected last year, according to the Bipartisan Policy Center. At Tuesday's Cabinet meeting, Treasury Secretary Scott Bessent said the tariff revenues could be 'well over $300 billion by the end of the year.' Bessent added that 'we don't agree' with the Congressional Budget Office estimate that tariffs would bring in $2.8 trillion over 10 years, 'which we think is probably low.' The governments of Japan, South Korea, Malaysia, Myanmar, Thailand, Cambodia and South Africa have each said they hope for further negotiations on tariffs with Trump, though it's unclear how that's possible as Trump has said it would be too 'complicated' to hold all those meetings. Instead on Tuesday, Trump posted on social media that the tariffs would be charged as scheduled starting Aug. 1. 'There has been no change to this date, and there will be no change,' Trump said on Truth Social. 'No extensions will be granted. Thank you for your attention to this matter!' Josh Boak, The Associated Press
Globe and Mail
25 minutes ago
- Globe and Mail
Uber Announces Date of Second Quarter 2025 Results Conference Call
Uber Technologies, Inc. (NYSE: UBER) will hold its quarterly conference call to discuss its second quarter 2025 financial results on Wednesday, August 6th at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time). A live webcast of the conference call and earnings release materials can be found on Uber's Investor Relations website at A replay of the conference call will be accessible for at least 90 days. Disclosure Information Uber uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the company's Investor Relations website, in addition to following the company's press releases, SEC filings, public conference calls, presentations, and webcasts. About Uber Uber's mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 61 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.
