Investment Opportunities in Duolingo, Nice, and Dell
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy DUOL?
Source: NASDAQ.COM
- Duolingo's Rapid Growth: The company reported third-quarter revenue of $271.7 million, a 41% year-over-year increase, significantly outpacing user growth of 20%, indicating strong profitability and market demand, with fourth-quarter revenue expected to exceed $275 million, solidifying its leadership in the language learning market.
- Nice's AI Technology: Nice's annual recurring revenue reached $328 million, up 66% year-over-year, despite an overall growth rate of 8%, positioning it as a leader in the agentic AI sector, which is projected to grow at an average annual rate of 42%.
- Dell's AI Strategy: Dell's third-quarter revenue was $27 billion, an 11% increase year-over-year, with FY26 revenue expected to reach $111.7 billion and AI shipments projected to grow by 150%, showcasing its strong competitive edge in high-performance platforms, despite a nearly 30% drop in stock price.
- Investor Sentiment Shift: Although Dell's outlook is optimistic, a broader malaise surrounding AI stocks has led to a decline in its share price; however, as the market reassesses its AI capabilities, the stock is likely to rebound towards the analyst target price of $115.39.
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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: 95.180
Low
160.00
Averages
260.36
High
330.00
Current: 95.180
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.
Duolingo Plans to Double Users by 2028 Amid Stock Decline
- User Growth Target: Duolingo aims to double its daily active users from 52.7 million to 100 million by 2028, although this strategy may lead to slower revenue and earnings growth in the short term, impacting investor confidence.
- Revenue and Profit Performance: In 2025, Duolingo achieved a record $1.04 billion in revenue, a 39% year-over-year increase, with net income reaching $414.1 million, up 367%, showcasing the strength of its business model, yet the sustainability of future growth is questioned.
- Attractive Market Valuation: Following an 82% stock price decline, Duolingo's price-to-sales ratio has dropped to 4.8, the lowest since its IPO, representing a 70% discount to its historical average of 16.3, potentially offering a good opportunity for long-term investors.
- AI Features Attract Users: Duolingo has attracted 12.2 million paying subscribers, a 28% annual increase, by launching AI-driven features like Video Call and Roleplay, demonstrating its innovative capabilities and strong market demand in the education sector.
See More
Duolingo Stock Plummets 82%, AI Fuels User Growth Strategy
- User Growth Target: Duolingo aims to nearly double its daily active users from 52.7 million to 100 million by 2028, a strategy that may temporarily slow revenue and profit growth but will enhance its competitive position in the long run.
- Record Revenue and Profit: In 2025, Duolingo generated a record $1.04 billion in revenue, a 39% increase year-over-year, with net income reaching $414.1 million, up 367%, showcasing the strength of its business model.
- AI Features Attract Users: The AI video call feature launched by Duolingo attracted a significant number of users, with 12.2 million paying subscribers by the end of 2025, a 28% year-over-year increase, indicating the critical role of AI in enhancing user experience and subscription conversion rates.
- Valuation Attractiveness: Following an 82% drop in stock price, Duolingo's price-to-sales ratio has fallen to 4.8, well below its historical average of 16.3, with a current price-to-earnings ratio of 12.1, highlighting the investment value of its stock, especially given the substantial potential for future user growth.
See More
Duolingo Under Investigation Amid Stock Plunge
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Duolingo has engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to legal liabilities.
- Earnings Report Impact: On February 26, 2026, Duolingo announced its fourth-quarter results for fiscal year 2025, projecting slower bookings growth and reduced profitability, which directly caused a 14.01% drop in stock price the following day.
- Sharp Stock Decline: Following the earnings report, Duolingo's stock price fell by $16.45 to close at $101.00 per share, reflecting market concerns about the company's future performance.
- Potential Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, may provide legal support to affected investors, further exacerbating the legal and financial risks faced by the company.
See More
Investment Opportunities Amid Market Volatility
- Figma's Price Decline: Figma's stock has fallen from its IPO price of $33 to $28.94, representing a 79% drop from its 52-week high of $143, although its unexpected 40% revenue growth in Q4 raises questions about future growth prospects.
- Trade Desk's Challenges: The Trade Desk reported a mere 14% revenue growth in its latest quarter, marking its weakest performance since the pandemic, and is undergoing executive turnover; however, the CEO's recent $150 million stock purchase indicates confidence in the company's future.
- Duolingo's User Growth: Despite Duolingo's stock plummeting over 80% from last year's peak, its monthly active users have increased by 30% to 52.3 million, with 77% on free ad-supported accounts, demonstrating the platform's stickiness and appeal.
- Market Rebound Potential: Despite overall market volatility, Figma, Trade Desk, and Duolingo are trading at less than 14 times projected earnings, suggesting potential investment opportunities for patient investors willing to sift through the market's retreat.
See More
Figma, The Trade Desk, and Duolingo Stocks Plummet
- Figma's Price Drop: Figma's stock has plummeted 79% from its peak last year, although its latest quarter saw a 40% acceleration in revenue growth, concerns about future growth persist, highlighting intensifying competition in the SaaS sector.
- Trade Desk's Challenges: The Trade Desk's stock has fallen 70%, with a mere 14% revenue growth in its latest quarter marking its weakest performance outside of the pandemic, compounded by executive turnover; however, the CEO's recent $150 million stock purchase indicates confidence in the company's future.
- Duolingo's Hard Hit: Duolingo's stock has crashed over 80%, despite a 30% increase in monthly active users, market expectations for future growth remain low, and its 2026 revenue guidance was disappointing, reflecting competitive pressures from AI tools.
- Market Volatility: A quarter of publicly traded companies have seen their market value shrink by over 50%, while only a tenth of stocks have dropped by at least 70%, indicating uncertainty in the market and a cautious sentiment among investors.
See More
Analysis of Investment Opportunities in Growth Stocks
- Robinhood Market Performance: Robinhood (HOOD) has seen its stock price drop over 30% year-to-date, yet its prediction market segment reached 2.3 billion contracts traded in Q3 2025 and 2.5 billion in October, indicating strong performance across its diversified business, particularly with net interest revenue increasing by 39% year-over-year.
- Prediction Market Catalyst: The launch of NFL and college football contracts significantly boosted Robinhood's prediction market, which traded over 12 billion event contracts throughout 2025, suggesting this segment could be a key driver for future growth and help the company regain market momentum.
- Duolingo Stock Volatility: Despite Duolingo (DUOL) experiencing a stock price decline of over 40% year-to-date, its revenue grew by 35% year-over-year in Q4, indicating continued market share expansion in the edtech sector, with net income tripling, reflecting robust fundamentals.
- Stock Buyback Initiative: Duolingo has authorized a $400 million stock repurchase program, representing nearly 10% of its outstanding shares, signaling management's optimism about the undervaluation of its stock and potentially providing a favorable buying opportunity for investors.
See More
Duolingo Plans to Double Users by 2028 Amid Stock Decline
- User Growth Target: Duolingo aims to double its daily active users from 52.7 million to 100 million by 2028, although this strategy may lead to slower revenue and earnings growth in the short term, impacting investor confidence.
- Revenue and Profit Performance: In 2025, Duolingo achieved a record $1.04 billion in revenue, a 39% year-over-year increase, with net income reaching $414.1 million, up 367%, showcasing the strength of its business model, yet the sustainability of future growth is questioned.
- Attractive Market Valuation: Following an 82% stock price decline, Duolingo's price-to-sales ratio has dropped to 4.8, the lowest since its IPO, representing a 70% discount to its historical average of 16.3, potentially offering a good opportunity for long-term investors.
- AI Features Attract Users: Duolingo has attracted 12.2 million paying subscribers, a 28% annual increase, by launching AI-driven features like Video Call and Roleplay, demonstrating its innovative capabilities and strong market demand in the education sector.
See More
Duolingo Stock Plummets 82%, AI Fuels User Growth Strategy
- User Growth Target: Duolingo aims to nearly double its daily active users from 52.7 million to 100 million by 2028, a strategy that may temporarily slow revenue and profit growth but will enhance its competitive position in the long run.
- Record Revenue and Profit: In 2025, Duolingo generated a record $1.04 billion in revenue, a 39% increase year-over-year, with net income reaching $414.1 million, up 367%, showcasing the strength of its business model.
- AI Features Attract Users: The AI video call feature launched by Duolingo attracted a significant number of users, with 12.2 million paying subscribers by the end of 2025, a 28% year-over-year increase, indicating the critical role of AI in enhancing user experience and subscription conversion rates.
- Valuation Attractiveness: Following an 82% drop in stock price, Duolingo's price-to-sales ratio has fallen to 4.8, well below its historical average of 16.3, with a current price-to-earnings ratio of 12.1, highlighting the investment value of its stock, especially given the substantial potential for future user growth.
See More
Duolingo Under Investigation Amid Stock Plunge
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Duolingo has engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to legal liabilities.
- Earnings Report Impact: On February 26, 2026, Duolingo announced its fourth-quarter results for fiscal year 2025, projecting slower bookings growth and reduced profitability, which directly caused a 14.01% drop in stock price the following day.
- Sharp Stock Decline: Following the earnings report, Duolingo's stock price fell by $16.45 to close at $101.00 per share, reflecting market concerns about the company's future performance.
- Potential Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, may provide legal support to affected investors, further exacerbating the legal and financial risks faced by the company.
See More
Investment Opportunities Amid Market Volatility
- Figma's Price Decline: Figma's stock has fallen from its IPO price of $33 to $28.94, representing a 79% drop from its 52-week high of $143, although its unexpected 40% revenue growth in Q4 raises questions about future growth prospects.
- Trade Desk's Challenges: The Trade Desk reported a mere 14% revenue growth in its latest quarter, marking its weakest performance since the pandemic, and is undergoing executive turnover; however, the CEO's recent $150 million stock purchase indicates confidence in the company's future.
- Duolingo's User Growth: Despite Duolingo's stock plummeting over 80% from last year's peak, its monthly active users have increased by 30% to 52.3 million, with 77% on free ad-supported accounts, demonstrating the platform's stickiness and appeal.
- Market Rebound Potential: Despite overall market volatility, Figma, Trade Desk, and Duolingo are trading at less than 14 times projected earnings, suggesting potential investment opportunities for patient investors willing to sift through the market's retreat.
See More
Figma, The Trade Desk, and Duolingo Stocks Plummet
- Figma's Price Drop: Figma's stock has plummeted 79% from its peak last year, although its latest quarter saw a 40% acceleration in revenue growth, concerns about future growth persist, highlighting intensifying competition in the SaaS sector.
- Trade Desk's Challenges: The Trade Desk's stock has fallen 70%, with a mere 14% revenue growth in its latest quarter marking its weakest performance outside of the pandemic, compounded by executive turnover; however, the CEO's recent $150 million stock purchase indicates confidence in the company's future.
- Duolingo's Hard Hit: Duolingo's stock has crashed over 80%, despite a 30% increase in monthly active users, market expectations for future growth remain low, and its 2026 revenue guidance was disappointing, reflecting competitive pressures from AI tools.
- Market Volatility: A quarter of publicly traded companies have seen their market value shrink by over 50%, while only a tenth of stocks have dropped by at least 70%, indicating uncertainty in the market and a cautious sentiment among investors.
See More
Analysis of Investment Opportunities in Growth Stocks
- Robinhood Market Performance: Robinhood (HOOD) has seen its stock price drop over 30% year-to-date, yet its prediction market segment reached 2.3 billion contracts traded in Q3 2025 and 2.5 billion in October, indicating strong performance across its diversified business, particularly with net interest revenue increasing by 39% year-over-year.
- Prediction Market Catalyst: The launch of NFL and college football contracts significantly boosted Robinhood's prediction market, which traded over 12 billion event contracts throughout 2025, suggesting this segment could be a key driver for future growth and help the company regain market momentum.
- Duolingo Stock Volatility: Despite Duolingo (DUOL) experiencing a stock price decline of over 40% year-to-date, its revenue grew by 35% year-over-year in Q4, indicating continued market share expansion in the edtech sector, with net income tripling, reflecting robust fundamentals.
- Stock Buyback Initiative: Duolingo has authorized a $400 million stock repurchase program, representing nearly 10% of its outstanding shares, signaling management's optimism about the undervaluation of its stock and potentially providing a favorable buying opportunity for investors.
See More
