Wall Street analysts from JPMorgan, Morgan Stanley, and Citi have downgraded Duolingo (DUOL) stock with big cuts to price targets, as the company shifts focus to user growth over quick profits in 2026.
Duolingo shares fell 22% after forecasting slower 2026 bookings growth (~11%) to prioritize AI features and user growth toward 100M DAUs by 2028.
Bank of America upgrades Duolingo to Buy, citing strong entertainment value and high subscriber retention despite a lower price target.
Duolingo's (DUOL) stock tumbles 23% after forecasting Q4 bookings below estimates. The language app prioritizes user growth and teaching quality while raising annual revenue guidance amid strong AI-driven subscriber gains.
Duolingo's fastest growth is in China, its most crucial market. China is the top source for the flexible, low-cost Duolingo English Test. The company is "doubling down", planning deeper investment, local hiring, and partnerships to capitalize on massive demand.
