Analyst Predicts Internet Stocks Will Require AI Profits by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
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Source: Benzinga
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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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: 142.800
Low
160.00
Averages
260.36
High
330.00
Current: 142.800
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.
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