Rosetta Stone Inc (RST): Here’s Why You Should Be Bullish

In April, the company finally announced that it would be shutting down all of its low-margin and largely ineffective stateside kiosks. Instead, distribution is now shifting to the cloud, making it easier for Rosetta Stone to offer more affordable programs that are easily accessed via both desktop and mobile devices. In addition, instead of someone making a rather expensive, one-time purchase, the company can offer a subscription model with more reasonable prices spaced out over time.

3. Enormous opportunity
It’s no secret that the world is becoming smaller. Even if rising energy prices make long-distance travel more prohibitive, our ability to communicate via the Internet isn’t going anywhere anytime soon.

While Rosetta Stone Inc (NYSE:RST) currently gets 63% of its revenue from North American consumers, the opportunity abroad and in the educational community is immense. The company is aware of this opportunity, as it is piloting its ReFLEX initiative in South Korea and Japan before a probable release in mainland China.

And though — from personal experience — the software the company has developed is impressive, Rosetta Stone Inc (NYSE:RST) also realizes that there’s no replacement for interaction with other humans who speak different languages.

That’s why the company’s recent acquisition of Livemocha is so important. As the company said in its press release, the acquisition “brings with it one of the world’s largest online language-learning communities and a powerful, scalable technology platform.”

The article 3 Reasons to Buy Rosetta Stone Today originally appeared on Fool.com and is written by Brian Stoffel.

Fool contributor Brian Stoffel has no position in any stocks mentioned. The Motley Fool recommends Rosetta Stone. The Motley Fool owns shares of Rosetta Stone.

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