Duolingo’s 80% Slide Collides With Strong Results and Bargain Valuation

Overview

• Shares trade near $103, roughly 80% below the May 2025 peak of $544.93 after a year-long selloff.
• Q4 2025 results showed revenue of $282.9 million with 35% growth, earnings of $0.91 per share beating estimates, and a net margin of 39.91%.
• The stock now sits near 12.14 times earnings with a 0.70 PEG ratio and about 13.4 times free cash flow, levels more typical of slow-growth firms.
• Institutions increased exposure as Quent Capital grew its stake by 21,133.9% in Q4 and Goldman Sachs lifted holdings by 123.9%, with institutional ownership at 91.59%.
• Analyst views are split with an average price target of $206.16 and recent target cuts from Citigroup, Barclays, and Needham, while new features like a chess course with over 7 million daily users and the AI-powered Max tier point to rising engagement.