Duolingo

DUOL

Market cap $7.14B

Duolingo is leading the language learning app space through innovative marketing, creating an attractive growth story with strong user growth and earnings. Previous backlash regarding DUOL's AI announcement is still lingering, slowing down user growth. Duolingo's growth remains good regardless. The market's concerns are overpriced. I estimate 33% upside to $215.5 in DUOL stock.

Duolingo, Inc. is trading at 52-week lows, with discounted cash flow analysis suggesting the stock is undervalued based on assumptions of 15% CAGR and 30% FCF margins. Management prioritizes growth over margin expansion, focusing on expanding the total addressable market and international penetration, particularly in Asia. Bookings growth deceleration and underperformance of Max, the AI-driven subscription tier, introduce uncertainty to DUOL's growth and conversion outlook.

Duolingo After The Bookings Reset: Fair Value With Rebound Optionality

Duolingo stock peaked in mid-May 2025 with a 67% year-to-date gain, but ended the year down 46% anyhow. The stock fell despite strong earnings as investors worried about AI competition and a strategic shift toward user growth over profits.

Investors interested in Technology Services stocks are likely familiar with V2X (VVX) and Duolingo, Inc. (DUOL). But which of these two stocks offers value investors a better bang for their buck right now?

Duolingo remains a Buy as its platform expands beyond languages into chess, math, and music, enhancing user engagement and monetization potential.

Duolingo (DUOL) remains a Strong Buy after a sharp sell-off, with fundamentals and user growth outpacing AI disruption fears. Q3 2025 saw revenue up 41% YoY, bookings up 33% YoY, and DAUs up 36%, validating platform stickiness. Management prioritizes user growth over near-term monetization, maximizing data for AI and long-term dominance, echoing Spotify's successful strategy.

Duolingo stock crashed to its lowest level since August 2024, continuing a downward trend that started in May last year when it peaked at $544. It has dropped by 70% below its all-time high, erasing billions of dollars in value as its valuation plunged to $7.48 billion.

In the most recent trading session, Duolingo, Inc. (DUOL) closed at $161.74, indicating a -8.45% shift from the previous trading day.

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