Duolingo Stock (DUOL) Faces AI Disruption Fears Amid Market Selloff
Duolingo shares have plunged below $200 from May's $520 peak as investors grapple with AI's perceived threat to language-learning platforms. The company's strong Q3 results—featuring 36% annual user growth and $1.2 billion bookings guidance—failed to offset market concerns about real-time translation technologies eroding demand.
Meta's AI-powered glasses and ubiquitous translation apps have fueled bearish narratives about Duolingo's obsolescence. Last week's softer outlook exacerbated the selloff, though some argue the reaction overstates risks. The Core debate centers on whether Duolingo offers intrinsic educational value beyond transactional translation services.