Shares of CoStar Group Inc. and Duolingo Inc. are poised for a comeback, according to a fund manager at Baillie Gifford.
“Both of these companies have been hard hit, and there’s a lot of pessimism around them, but we think they’re both very good businesses,” said Stephen Paice, a partner at the investment firm.
CoStar, a commercial real estate information and analytics company, has seen its stock price fall about 24% this year, as of Friday’s close, while Duolingo, a language-learning platform, has dropped about 37%.
Paice said CoStar’s recent acquisition of Apartments.com is a “very good deal” that will help the company grow its market share.
“They’ve got a very strong position in the market, and they’re well-positioned to benefit from the long-term trends in commercial real estate,” he said.
As for Duolingo, Paice said the company has a “very strong” user base and is well-positioned to benefit from the growing demand for online language learning.
“They’ve got a very innovative product, and they’re constantly adding new features and languages,” he said.
Paice said Baillie Gifford has been buying shares of both companies in recent months.
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