Is Duolingo Stock (DUOL) a Smart Buy After Its Latest Plunge?

DUOL Tanks: Language App's Stock Takes Brutal Hit—Time to Buy the Dip?

Market Mayhem

Duolingo's shares just got crushed in the latest trading session. Investors are scrambling—wondering if this is a classic oversell or the start of something uglier.

Growth vs. Reality

The app’s user base keeps expanding, but monetization struggles linger. Premium subscribers are growing—just not fast enough to keep Wall Street’s patience from wearing thin.

Earnings Under Microscope

Last quarter’s numbers fell short of inflated expectations. Revenue climbed—but not at the ‘hypergrowth’ pace analysts had baked into their models.

Bottom Line

If you believe in the long-term play—digital education, global reach, brand strength—this dip might be a gift. If not? Well, there’s always another app—or another stock. Either way, do your own homework—unless you’re into trusting strangers on the internet for financial advice.

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For context, Duolingo is a language-learning app that uses gamification and AI to help millions of people learn new languages worldwide. Earlier this month, the company posted Q2 2025 results, with daily active users surging 40% year-over-year to nearly 48 million.

What’s Happening with DUOL Stock?

The sharp drop pushed Duolingo shares back into the red for 2025. The decline was mainly triggered after Google (GOOGL) unveiled an AI-powered real-time translation tool, which some see as a potential threat to Duolingo. However, the news wasn’t entirely unexpected, as Duolingo CEO Luis von Ahn had already addressed AI-related competition concerns nearly a year ago. That said, the sudden sell-off on Friday suggests other factors may also be at play.

Year-to-date, DUOL stock has declined by 8%.

What Lies Ahead?

Amid the recent downturn, Wall Street analysts remain supportive of Duolingo’s growth story. Following the Q2 results, several analysts reiterated Buy ratings on DUOL stock.

Notably, Citi’s four-star-rated analyst Ygal Arounian initiated coverage with a Buy rating and a $400 price target, arguing that concerns over AI competition are overstated at current levels. The firm sees Duolingo’s expansion into new learning verticals as a key driver of long-term growth, creating an attractive risk/reward opportunity for investors.

Is DUOL Stock a Good Buy?

Turning to Wall Street, DUOL stock has a Moderate Buy consensus rating based on 13 Buys and five Holds assigned in the last three months. Also, the average Duolingo stock price target of $487.69 implies more than 60% upside potential from current levels.