Duolingo Stock Hits All-Time Low, Investors Optimistic About Future Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy DUOL?
Source: Fool
- User Growth Strategy: Duolingo aims to increase its daily active users to 100 million by 2028, nearly doubling the 52.7 million users at the end of 2025, which may impact short-term revenue and profits but will significantly enhance monetization potential in the long run.
- Revenue and Profit Growth: In 2025, Duolingo achieved a record $1.04 billion in total revenue, representing a 39% year-over-year increase, while GAAP net income soared by 367% to $414.1 million, showcasing strong financial performance despite potential future challenges.
- AI Technology Application: Duolingo enhances user experience through AI-driven features like Video Call and Roleplay, with paid subscribers reaching 12.2 million in 2025, up 28%, indicating the effectiveness of AI in attracting users.
- Valuation Attractiveness: Duolingo's current P/E ratio of 10.2 is the lowest since its 2021 IPO, representing a 56% discount to the S&P 500's 23.5, highlighting the investment value of its stock, even as earnings are expected to decline to $7.07 per share in 2026.
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Analyst Views on DUOL
Wall Street analysts forecast DUOL stock price to rise
17 Analyst Rating
10 Buy
6 Hold
1 Sell
Moderate Buy
Current: 91.460
Low
160.00
Averages
260.36
High
330.00
Current: 91.460
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.
Analysis of SaaS Companies' Prospects Amid AI Disruption
- Market Panic Intensifies: SaaS companies are experiencing severe market panic, as evidenced by the iShares Expanded Tech-Software Sector ETF (IGV) dropping over 30% in the past six months, compared to a mere 9% decline in the NASDAQ, indicating a significant loss of investor confidence in SaaS stocks.
- Chegg's Collapse: The online homework help platform Chegg has seen its stock plummet over 99% since its peak in 2021, as its core product has been replaced by free AI tools like ChatGPT, leading to a 40% year-over-year revenue decline, highlighting the tangible threat AI poses to certain SaaS companies.
- HubSpot and Constellation's Dilemma: Despite HubSpot and Constellation Software achieving all-time highs in revenue and free cash flow, their valuations have plummeted, with HubSpot trading at a mere 4 times sales and Constellation at 3 times, reflecting a pessimistic outlook from the market regarding their futures.
- AI as a Double-Edged Sword: While AI poses a threat to SaaS companies, some experts believe it could also serve as an advantage, particularly for firms like ServiceNow and Cadence, which may leverage AI effectively to gain a competitive edge in the evolving market landscape.
See More
Duolingo Plans to Double User Base by 2028
- User Growth Target: Duolingo aims to increase its daily active users from 52.7 million to 100 million by 2028, which may lead to slower revenue and earnings growth in the short term, but will enhance long-term revenue potential.
- Revenue and Profit Performance: In 2025, Duolingo generated $1.04 billion in total revenue, a 39% increase year-over-year, while GAAP net income reached $414.1 million, soaring by 367%, indicating a strong foundation for its business model.
- AI Strategy Integration: The company has incorporated AI features through its Super Duolingo and Duolingo Max subscription services, allowing users to interact with the AI virtual assistant Lily, enhancing the language learning experience and underscoring AI's significance in its operations.
- Valuation Attractiveness: Duolingo's price-to-earnings ratio stands at 10.2, which is 56% lower than the S&P 500's 23.5, indicating that its stock, after an 83% decline, is currently very attractive for long-term investors looking to enter.
See More
Duolingo Stock Hits All-Time Low, Investors Optimistic About Future Growth
- User Growth Strategy: Duolingo aims to increase its daily active users to 100 million by 2028, nearly doubling the 52.7 million users at the end of 2025, which may impact short-term revenue and profits but will significantly enhance monetization potential in the long run.
- Revenue and Profit Growth: In 2025, Duolingo achieved a record $1.04 billion in total revenue, representing a 39% year-over-year increase, while GAAP net income soared by 367% to $414.1 million, showcasing strong financial performance despite potential future challenges.
- AI Technology Application: Duolingo enhances user experience through AI-driven features like Video Call and Roleplay, with paid subscribers reaching 12.2 million in 2025, up 28%, indicating the effectiveness of AI in attracting users.
- Valuation Attractiveness: Duolingo's current P/E ratio of 10.2 is the lowest since its 2021 IPO, representing a 56% discount to the S&P 500's 23.5, highlighting the investment value of its stock, even as earnings are expected to decline to $7.07 per share in 2026.
See More
Faruqi & Faruqi Investigates Duolingo Investor Losses
- Legal Investigation Launched: Faruq & Faruqi LLP is investigating Duolingo to provide legal support for investors who have suffered significant losses, indicating potential legal liabilities for the company.
- Investor Loss Focus: The firm encourages investors who have incurred substantial losses in Duolingo stock or options to contact them directly, demonstrating a commitment to protecting investor rights.
- Law Firm Background: Established in 1995, Faruqi & Faruqi has recovered hundreds of millions for investors, highlighting its expertise and influence in the securities law sector.
- Contact Information Provided: Investors can reach out directly to partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310) for prompt legal consultation and support.
See More
SaaS Stocks Decline as Investors Shift to Defensive Sectors
- ServiceNow Stock Plunge: ServiceNow shares fell 3.1% to $97.47, marking a new low since May 2023 and a 60% drop from their April 2025 peak, indicating a significant loss of investor confidence in SaaS stocks that could impact future financing capabilities.
- Atlassian Restructuring: Atlassian's stock dropped 2% to $63.62, the lowest since July 2018, as the company announced a 10% workforce reduction to prioritize AI and enterprise sales, with analysts lowering price targets, reflecting concerns about future growth.
- Duolingo Under Pressure: Duolingo shares declined 5.4% to $91.06, the lowest since March 2023, down 82% since May last year, with analysts suggesting that its new strategy may limit short-term revenue growth, leading to cautious investor sentiment.
- Market Sentiment Shift: While sentiment for NOW has sharply increased to 'extremely bullish' in the past two days, TEAM's sentiment remains 'bearish', highlighting a significant divergence in investor outlooks across different SaaS companies amid overall market skepticism.
See More
Duolingo to Announce Q1 Earnings on May 4
- Earnings Announcement: Duolingo will release its Q1 2026 earnings report on May 4, 2026, after the U.S. market closes, providing crucial performance data for investors to assess the company's market standing.
- Live Webcast: The company will host a video webcast at 5:00 p.m. ET on the same day, accessible to the public via Duolingo's Investor Relations website, enhancing transparency and attracting investor interest.
- Replay and Archive: A replay of the event will be available two hours post-live broadcast and archived for one year, ensuring that investors who miss the live event can access key information, thereby improving information accessibility.
- Industry Leadership: As the world's leading mobile learning platform, Duolingo's flagship app continues to be the top-grossing app in the Education category, reflecting its strong competitive position and user base in the language learning market.
See More
Analysis of SaaS Companies' Prospects Amid AI Disruption
- Market Panic Intensifies: SaaS companies are experiencing severe market panic, as evidenced by the iShares Expanded Tech-Software Sector ETF (IGV) dropping over 30% in the past six months, compared to a mere 9% decline in the NASDAQ, indicating a significant loss of investor confidence in SaaS stocks.
- Chegg's Collapse: The online homework help platform Chegg has seen its stock plummet over 99% since its peak in 2021, as its core product has been replaced by free AI tools like ChatGPT, leading to a 40% year-over-year revenue decline, highlighting the tangible threat AI poses to certain SaaS companies.
- HubSpot and Constellation's Dilemma: Despite HubSpot and Constellation Software achieving all-time highs in revenue and free cash flow, their valuations have plummeted, with HubSpot trading at a mere 4 times sales and Constellation at 3 times, reflecting a pessimistic outlook from the market regarding their futures.
- AI as a Double-Edged Sword: While AI poses a threat to SaaS companies, some experts believe it could also serve as an advantage, particularly for firms like ServiceNow and Cadence, which may leverage AI effectively to gain a competitive edge in the evolving market landscape.
See More
Duolingo Plans to Double User Base by 2028
- User Growth Target: Duolingo aims to increase its daily active users from 52.7 million to 100 million by 2028, which may lead to slower revenue and earnings growth in the short term, but will enhance long-term revenue potential.
- Revenue and Profit Performance: In 2025, Duolingo generated $1.04 billion in total revenue, a 39% increase year-over-year, while GAAP net income reached $414.1 million, soaring by 367%, indicating a strong foundation for its business model.
- AI Strategy Integration: The company has incorporated AI features through its Super Duolingo and Duolingo Max subscription services, allowing users to interact with the AI virtual assistant Lily, enhancing the language learning experience and underscoring AI's significance in its operations.
- Valuation Attractiveness: Duolingo's price-to-earnings ratio stands at 10.2, which is 56% lower than the S&P 500's 23.5, indicating that its stock, after an 83% decline, is currently very attractive for long-term investors looking to enter.
See More
Duolingo Stock Hits All-Time Low, Investors Optimistic About Future Growth
- User Growth Strategy: Duolingo aims to increase its daily active users to 100 million by 2028, nearly doubling the 52.7 million users at the end of 2025, which may impact short-term revenue and profits but will significantly enhance monetization potential in the long run.
- Revenue and Profit Growth: In 2025, Duolingo achieved a record $1.04 billion in total revenue, representing a 39% year-over-year increase, while GAAP net income soared by 367% to $414.1 million, showcasing strong financial performance despite potential future challenges.
- AI Technology Application: Duolingo enhances user experience through AI-driven features like Video Call and Roleplay, with paid subscribers reaching 12.2 million in 2025, up 28%, indicating the effectiveness of AI in attracting users.
- Valuation Attractiveness: Duolingo's current P/E ratio of 10.2 is the lowest since its 2021 IPO, representing a 56% discount to the S&P 500's 23.5, highlighting the investment value of its stock, even as earnings are expected to decline to $7.07 per share in 2026.
See More
Faruqi & Faruqi Investigates Duolingo Investor Losses
- Legal Investigation Launched: Faruq & Faruqi LLP is investigating Duolingo to provide legal support for investors who have suffered significant losses, indicating potential legal liabilities for the company.
- Investor Loss Focus: The firm encourages investors who have incurred substantial losses in Duolingo stock or options to contact them directly, demonstrating a commitment to protecting investor rights.
- Law Firm Background: Established in 1995, Faruqi & Faruqi has recovered hundreds of millions for investors, highlighting its expertise and influence in the securities law sector.
- Contact Information Provided: Investors can reach out directly to partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310) for prompt legal consultation and support.
See More
SaaS Stocks Decline as Investors Shift to Defensive Sectors
- ServiceNow Stock Plunge: ServiceNow shares fell 3.1% to $97.47, marking a new low since May 2023 and a 60% drop from their April 2025 peak, indicating a significant loss of investor confidence in SaaS stocks that could impact future financing capabilities.
- Atlassian Restructuring: Atlassian's stock dropped 2% to $63.62, the lowest since July 2018, as the company announced a 10% workforce reduction to prioritize AI and enterprise sales, with analysts lowering price targets, reflecting concerns about future growth.
- Duolingo Under Pressure: Duolingo shares declined 5.4% to $91.06, the lowest since March 2023, down 82% since May last year, with analysts suggesting that its new strategy may limit short-term revenue growth, leading to cautious investor sentiment.
- Market Sentiment Shift: While sentiment for NOW has sharply increased to 'extremely bullish' in the past two days, TEAM's sentiment remains 'bearish', highlighting a significant divergence in investor outlooks across different SaaS companies amid overall market skepticism.
See More
Duolingo to Announce Q1 Earnings on May 4
- Earnings Announcement: Duolingo will release its Q1 2026 earnings report on May 4, 2026, after the U.S. market closes, providing crucial performance data for investors to assess the company's market standing.
- Live Webcast: The company will host a video webcast at 5:00 p.m. ET on the same day, accessible to the public via Duolingo's Investor Relations website, enhancing transparency and attracting investor interest.
- Replay and Archive: A replay of the event will be available two hours post-live broadcast and archived for one year, ensuring that investors who miss the live event can access key information, thereby improving information accessibility.
- Industry Leadership: As the world's leading mobile learning platform, Duolingo's flagship app continues to be the top-grossing app in the Education category, reflecting its strong competitive position and user base in the language learning market.
See More
