The technology sector made a strong comeback in 2023 after a challenging 2022, with a particular focus on companies harnessing the power of artificial intelligence (AI). Two standout performers in this space over the past year have been Duolingo and Spotify, delivering impressive returns of 59% and 130%, respectively.
Duolingo, known as the world’s largest digital language education platform, boasts 88.4 million monthly active users. The company has been incorporating AI into its platform since 2013, with recent collaborations with OpenAI’s ChatGPT to further enhance the user experience. With a freemium model and a growing number of paid subscriptions, Duolingo saw a record-high $531.1 million in revenue in 2023, showcasing its ability to monetize its user base effectively.
On the other hand, Spotify, the leading music streaming platform globally, has leveraged AI in its content recommendation engine to personalize user experiences. Additionally, innovative features like Clips, a short-form video format similar to TikTok and Instagram Reels, have helped Spotify engage with younger audiences. The company ended 2023 with 602 million monthly active users and generated a record $14.1 billion in revenue for the year. Despite its stock soaring 130% over the past year, Spotify still trades below its all-time high, presenting a potential buying opportunity.
Both Duolingo and Spotify continue to innovate and expand their offerings, utilizing AI to drive growth and enhance user engagement. As the demand for AI-driven technologies continues to rise, these two companies are well-positioned to capitalize on this trend and deliver strong performance in the future. Investors looking to gain exposure to the AI sector may find Duolingo and Spotify to be compelling investment opportunities.
