Duolingo Stock Plummets 30% on Weak Q4 Outlook Despite Strong Q3 Performance
Duolingo's shares cratered nearly 30% in Thursday trading as investors balked at disappointing forward guidance, overshadowing what was otherwise a robust third-quarter report. The language-learning platform missed Wall Street's Q4 bookings forecast by $15 million at the midpoint, triggering analyst downgrades and raising concerns about slowing growth momentum.
KeyBanc's Justin Patterson led the bearish charge, slashing his rating to Hold amid concerns about user conversion rates. While Duolingo continues to show impressive metrics—36% DAU growth and 34% subscriber expansion—the market punished its cautious tone. The disconnect highlights Wall Street's unforgiving stance when growth narratives show cracks, even temporarily.