Duolingo Downgraded Despite Executing 'Exceptionally Well,' Analyst Warns Of Risk/Reward Imbalance

Shares of Duolingo Inc DUOL came under pressure in early trading on Monday. The stock has risen by 78% since the second-quarter earnings release, which makes the risk/reward negative, despite the company likely to report strong results for the third quarter, according to JMP Securities. Analyst Andrew Boone downgraded the rating for Duolingo from Market Outperform to Market Perform. The Duolingo Thesis: Management seems likely to continue to "execute exceptionally well," Boone said in the downgrade note. Ch ...