Duolingo Plunges 75% From Peak: Can a User-Growth Gamble Double the Stock by 2027?
Article excerpt
Duolingo (DUOL) finds itself at a critical crossroads. The language-learning app developer, once a Wall Street darling that soared to a record high of roughly $540 in May 2025, has since seen its stock price collapse by more than 75%. A confluence of forces - ranging from fears that artificial intelligence-powered translation tools will make language lessons obsolete to a deliberate corporate strategy that sacrifices near-term profits for user acquisition - has hammered the shares. Yet, some analysts argue the sell-off is wildly overdone and that the stock could double by the time 2027 rolls around. The core of the bull case rests on a simple premise: Duolingo’s decision to prioritize user growth over immediate monetization will expand its addressable market so dramatically that long-term revenue will far exceed current Wall Street estimates. During the first quarter of 2026, the platform attracted approximately 56.5 million daily active users. While the vast majority of those users engage with the app for free and generate revenue through advertising, a lucrative subset of 12.5 million users pay for subscription tiers like Super Duolingo and Duolingo Max. These paid plans unlock advanced features, most notably an AI-powered tool called Video Call. The feature deploys a digital avatar that allows users to practice conversational speaking skills in a foreign language...
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Extracted from this sentence
Revenue climbed 27% year over year in the first quarter of 2026.
