Duolingo's Stock Declines Amid User Growth Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 Jan 26
Source: NASDAQ.COM
Duolingo Inc (DUOL) stock fell 3.08% and hit a 52-week low, reflecting investor concerns despite significant user growth.
The company's daily active users surged from 9.8 million in 2021 to 50.5 million, and paid subscribers increased from 2.2 million to 11.5 million, leading to a revenue rise from $226 million to $964 million. However, the stock price plummeted due to fears surrounding future profitability and a strategic shift towards user acquisition, which may compress margins in the coming quarters.
This decline indicates a lack of confidence in Duolingo's long-term financial health, despite its impressive growth metrics, suggesting that investors are cautious about the sustainability of its current business model.
Analyst Views on DUOL
Wall Street analysts forecast DUOL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DUOL is 260.36 USD with a low forecast of 160.00 USD and a high forecast of 330.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
6 Hold
1 Sell
Moderate Buy
Current: 151.560
Low
160.00
Averages
260.36
High
330.00
Current: 151.560
Low
160.00
Averages
260.36
High
330.00
About DUOL
Duolingo, Inc. is a technology company. The Company is engaged in offering a mobile learning platform, as well as a digital English language proficiency assessment exam. It operates a freemium business model, namely, the app and the Website are accessible free of charge, although Duolingo also offers premium services for a subscription fee. Its solutions consist of the Duolingo App, Super Duolingo, Duolingo Max, Duolingo English Test: AI-Driven Language Assessment, Duolingo for Schools, and Duolingo ABC. The Duolingo App offers courses in over 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese and Chinese. Duolingo can also be accessed on desktop computers via a Web browser. Its subscription offering, Super Duolingo, offers learners additional features to enhance their learning experience. The Duolingo English Test is an online, on-demand, high-stakes English proficiency assessment. It also operates an animation and motion design studio.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
