Analyst Predicts Internet Stocks Will Require AI Profits by 2026
Internet Stocks Performance: Internet stocks are struggling as they lagged behind the S&P 500 and Russell 2000 in 2025 due to operational missteps, increased competition from generative AI, and inconsistent margins, despite a stable macroeconomic environment.
2026 Outlook on AI Monetization: Analysts emphasize that for internet companies to maintain valuations in 2026, they must show significant progress in AI monetization and profitability, alongside improved execution.
Stock-Specific Insights: JP Morgan's analyst Bryan M. Smilek rates Duolingo and Coursera as Overweight, citing potential for growth, while Etsy and Udemy are rated Neutral, and Nerdy Inc. and Chegg are Underweight due to negative sentiment and performance concerns.
AI Integration in Education: The integration of AI in education is expected to diversify traffic sources and enhance learning products, with companies that leverage enterprise tech and proprietary content being better positioned for success in this shift.
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Google Launches On-Demand SAT Practice Exams in Gemini
- Launch of Practice Exams: Google is introducing free SAT practice exams within the Gemini app, utilizing rigorously vetted content developed in partnership with The Princeton Review, aimed at enhancing users' exam preparation efficiency.
- Immediate Feedback Mechanism: After completing the practice tests, Gemini provides immediate feedback, helping students identify strengths and weaknesses, thereby optimizing their study strategies and improving their chances of passing the exam.
- Impact on Education Stocks: This initiative by Google could impact education stocks such as Coursera, Nerdy, and Duolingo, particularly intensifying competition in the online learning and test preparation sectors.
- Positive Market Reaction: Alphabet's stock has gained positive traction, rising 1.59% due to the launch of this new feature, indicating market recognition and anticipation of its educational technology strategy.

Intuitive Surgical (ISRG) Reports Q4 Revenue of $2.87 Billion, Exceeding Expectations
- Earnings Beat: Intuitive Surgical reported Q4 revenue of approximately $2.87 billion and adjusted earnings of $2.53 per share, both exceeding analyst expectations, driven by year-over-year growth in procedure volume and robotic system placements, leading to a rise in after-hours trading.
- Dividend Increase: Kinder Morgan topped Q4 revenue expectations with about $4.51 billion and adjusted earnings of $0.39 per share, while announcing a 2% quarterly dividend increase to $0.2925 per share, despite slightly lowering its 2026 earnings outlook, reflecting cautious sentiment amid ongoing energy market dynamics.
- Expansion Plans: USA Rare Earth announced plans to establish a high-capacity metal and alloy production plant in Lacq, France, capable of producing about 3,750 metric tons per year through its subsidiary Less Common Metals, aimed at strengthening transatlantic supply chains and boosting investor optimism.
- Market Volatility: Despite subdued overall market performance, small-cap benchmarks reached new highs, indicating sustained investor demand for risk assets against a backdrop of easing geopolitical tensions, which positively influenced the performance of certain tech stocks.








