2 Growth Stocks Down 10% to 64% to Buy in November

Duolingo (DUOL) and Take-Two Interactive (TTWO) are presented as compelling growth stock opportunities following recent price pullbacks. Duolingo's shares declined 64% from their peak after Q4 financial guidance fell short of expectations, despite robust Q3 performance with 36% year-over-year daily active user growth, 41% revenue growth, and a 52% increase in free cash flow to $347 million, as management prioritizes long-term user engagement. Similarly, Take-Two Interactive experienced a 10% dip due to a delay in Grand Theft Auto VI's release to November 2026, yet the company demonstrated strong underlying momentum with a record fiscal Q2, 33% year-over-year bookings growth, and analyst projections for bookings to nearly double by fiscal 2030, suggesting these dips are temporary and present attractive entry points.

Analysis

Duolingo (DUOL) and Take-Two Interactive (TTWO) are presented as growth opportunities following recent stock pullbacks. Duolingo's shares declined 64% from their peak due to Q4 guidance missing expectations, despite robust Q3 performance with 41% year-over-year revenue growth and 36% daily active user (DAU) growth. Its trailing-12-month free cash flow surged 52% to $347 million, lowering its FCF multiple to approximately 27. Management's focus on user growth and strong engagement metrics suggest the dip may be temporary.

Take-Two Interactive (TTWO) experienced a 10% dip from its 52-week high due to a six-month delay of Grand Theft Auto VI (GTA VI) to November 2026. Historically, such delays often lead to a more polished product, enhancing long-term value. The company already demonstrated strong current momentum with a record fiscal Q2, achieving 33% year-over-year bookings growth.

GTA VI is anticipated to be a significant driver, with analyst consensus projecting bookings to nearly double from $5.6 billion in fiscal 2025 to $10.8 billion by fiscal 2030. This substantial long-term growth potential, supported by a diversified game portfolio, positions the recent correction as an attractive entry point for investors.

Key Decisions for Investors

• Consider the recent pullbacks in Duolingo and Take-Two Interactive as potential entry points for long-term growth portfolios.
• Monitor Duolingo's Q4 earnings for confirmation of sustained user engagement and future monetization, aligning with management's strategic focus.
• Evaluate Take-Two's execution leading up to the Grand Theft Auto VI launch, focusing on development updates and continued strong performance of existing titles.