Duolingo Stock Faces Pressure Despite Strong Earnings as Google Translate Enters AI Race
Duolingo shares have plummeted over 40% in three months, with Alphabet's AI-powered Google Translate updates exacerbating recent declines. Yet the language app's fundamentals tell a different story - Q2 revenue surged 41% to $252.3 million while net income jumped 84% to $44.8 million.
Investor LL Insights argues these results sharpen Duolingo's investment thesis, shifting the debate from profitability to operating leverage. The bullish case hinges on accelerating user growth - daily active users climbed 40% to 47.7 million - and expanding margins. 'This isn't about survival anymore,' the investor notes, 'but how high the flywheel can spin.'