Duolingo’s Strong User Growth Overshadowed by Soft Revenue Outlook
Duolingo’s daily users jumped 23% to 58.7M in Q2, but soft Q3 revenue guidance of $302M missed estimates and sent shares down over 11%.
Duolingo’s daily users jumped 23% to 58.7M in Q2, but soft Q3 revenue guidance of $302M missed estimates and sent shares down over 11%.
BofA cuts Duolingo’s rating, warning that high valuation, AI risks, and uncertain growth could pressure the stock.
Duolingo grew users and revenue, but stock fell as it focuses on long-term learning improvements over fast profits.
Argus downgrades Duolingo stock from Buy to Hold, citing pressure on revenue from focus on daily user growth via chess, math, and music expansions.
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.