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Duolingo Sinks 38% This Year as Earnings Test Nears

Investor attention centers on guidance clarifying the trade‑off between user growth versus profit.

Overview

  • Shares have fallen roughly 24% in January and another 18% in February, leaving the stock down about 38% year to date.
  • Fourth‑quarter results are scheduled for release after the market closes on Feb. 26, setting up the immediate catalyst.
  • Management previously guided Q4 bookings to $329.5 million–$335.5 million versus a $344.1 million Street consensus.
  • The company flagged a deceleration in daily active user growth and outlined plans to ramp investments with potentially less aggressive monetization, pressuring near‑term earnings.
  • Sector re‑rating tied to AI competition has added to selling pressure, while analysts have trimmed targets and some tracking suggests DAU stabilization even as Q1 could land below consensus.