Core Viewpoint - Duolingo (DUOL) is considered mispriced due to market overreactions to slowing user growth and fears of AI competition, while the company's engagement durability, new non-language vertical opportunities, and data advantage are undervalued [1] Group 1 - The company has experienced a 65% decline in stock price [1] - The analyst emphasizes a focus on long-term investment opportunities based on fundamentals [1] - Extensive research has been conducted on various industries, including energy, technology, and homebuilding, indicating a broad analytical perspective [1] Group 2 - The analyst encourages discussions with other analysts, especially when differing views are held, to enhance the investment thesis [1]

Core Viewpoint - There is significant fear and uncertainty surrounding Duolingo (DUOL), particularly due to concerns related to AI and its impact on the company's performance [1]. Company Summary - Duolingo has experienced a decline in its stock value since the last review, primarily attributed to worries about AI developments [1].

Duolingo ( DUOL ) is quietly becoming one of the most profitable consumer apps in the market. With nearly 72% gross margins and a stunning 40% net income margin, the company converts revenue into earnings far more efficiently than peers. Its strong cash flow, overHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with ...

Core Insights - The analysis of Duolingo (DUOL) indicates a mixed outlook, with AI presenting both long-term risks and short-term benefits [1] Group 1: Company Analysis - The initial assessment of Duolingo was in July 2024, categorizing it as a hold due to concerns about AI's impact [1] - The analyst emphasizes a fundamental approach to investment, focusing on identifying undervalued stocks with growth potential [1] Group 2: Market Context - The analyst has experience covering both Brazilian and global stocks, suggesting a broad understanding of market dynamics [1]

Core Insights - The emergence of AI Learning Companions is transforming the education sector by providing personalized, long-term, and emotionally supportive learning experiences, moving beyond traditional educational software [1][3] Group 1: AI Language Practice - Language learning is a key area for AI Learning Companions, addressing the scarcity of immersive practice and real-time feedback that traditional methods lack [5] - Duolingo has integrated GPT-4 into its platform, allowing users to engage in roleplay conversations in various virtual scenarios, enhancing the realism of language practice [5][6] - In China, products like SpeakGuru offer tailored practice for exams like IELTS and high school English, providing instant feedback based on official scoring criteria [6][9] - AI language companions lower the barriers to practice, enabling students to engage in conversation anytime and anywhere, thus increasing practice frequency significantly [9][11] Group 2: Emotional Support and Habit Management - Learning is influenced by emotional factors, and AI Learning Companions can provide scalable emotional support that traditional educational systems often lack [12][17] - Replika, an AI emotional companion, has shown potential in helping users express emotions and alleviate stress, although it faces regulatory challenges regarding user safety [12][13] - Domestic products like Xiaosi 3.0 focus on emotional perception and habit guidance, helping students manage anxiety and procrastination through interactive dialogue [15][17] Group 3: Knowledge Guidance - AI is evolving towards providing knowledge guidance, with products like PhotoMath offering process-oriented learning in mathematics, enhancing understanding rather than just providing answers [18][21] - The integration of visual recognition and interactive explanations in products like Xiaoyuan AI aims to create a more engaging learning experience similar to that of a human tutor [21][25] - The potential for AI to handle routine knowledge explanations could free up teachers for more complex tasks, but challenges regarding reliability and ethical boundaries remain [25]

There's no doubt that the Q3 earnings season leading up to the close of 2025 has been a very volatile quarter. Investors have bashed many previously high-flying stocks, as ultra-high valuation multiples have demanded essentially perfect fundamental performance.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He ...

Duolingo ( DUOL ) entered the year as one of the biggest winners post-pandemic as well as of the rise of AI. The stock’s fall from grace has removed a lot of that luster, and management has more or less signaled continued pressuresJulian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian is the leader of the investing group B ...

Core Insights - Genshin Impact and Duolingo are collaborating for a unique event featuring popular characters from both platforms, including Paimon, Tighnari, Cyno, and Duo [2][3] Group 1: Collaboration Details - The "Genshin Impact x Duolingo 3-Day Streak Quest" runs from December 8 to December 27, allowing users to earn exclusive in-game rewards by completing learning exercises for three consecutive days [3][4] - Participants can unlock the "Genshin Impact Quest" in any Duolingo course, and upon completion, they will receive rewards such as a Genshin Impact avatar, namecard, and a unique dish recipe [4] Group 2: Event Mechanics - To complete the quest, users must finish one unit lesson daily for three days, leading to the creation of a collectible in-app statue of Paimon and Duo [4] - The rewards include an avatar named "Diligent Study," a namecard titled "Celebration: Dream Reader," and a Sumeru-style dish called "Spiced Fried Chicken" [4] Group 3: Regional Availability - The event is available in select regions, with December 25 being the last day for learners to join and earn rewards [8] - Users can check participation details specific to their region within the Duolingo app [8] Group 4: Recent Developments - This collaboration follows the release of Genshin Impact Version Luna III, which introduced a new 5-Star character and a new story chapter [6]

Group 1 - Duolingo is a profitable app-based education company experiencing over 40% annual revenue growth, despite a 66% drop in stock value, presenting a unique investment opportunity [1][4] - The company has 135 million monthly active users as of Q3 2025, demonstrating its ability to attract and retain learners through engaging language learning methods [5][8] - Duolingo has 11.5 million paying subscribers, which account for 84% of its revenue, reflecting a 34% year-over-year increase [7][8] Group 2 - The company generated nearly $350 million in free cash flow over the last 12 months, showcasing the scalability of its digital business model [8] - Less than 10% of Duolingo's current user base are paying subscribers, indicating significant growth potential [10] - Duolingo is expanding its offerings beyond language learning into areas like chess, math, and literacy, aiming to create gamified learning experiences across various subjects [11][12]

Sands Capital, an investment management company, released its Q3 2025 investor letter for the “Sands Capital Technology Innovators Fund.” A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant, long-term technological changes. The fund returned 8.4% (net) in the third quarter compared to a 12.5% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Despite concentrated lea ...