Don't Sweat Duolingo Stock's June Doldrums
DuolingoDuolingo(US:DUOL) Schaeffers Investment Research·2025-06-25 17:33

Core Insights - Duolingo Inc's shares have decreased by 2.7% to $411.54, continuing a downward trend after reaching a record high of $544.93 on May 14 [1] - Despite the recent decline, Duolingo's stock is up 26.9% in 2025 and is showing a historically bullish signal [2] Stock Performance - The stock is currently within 0.75 of its 20-day average true range (ATR) and has spent over 80% of the last 10 days and two months above this level [3] - Historical data indicates that after similar signals in the past three years, Duolingo's stock was higher one month later 67% of the time, with an average gain of 15.7% [3] Technical Indicators - The 14-day relative strength index (RSI) for Duolingo is at 13.2, indicating that the stock is in "oversold" territory, suggesting a potential short-term bounce [4] - The company's 50-day put/call volume ratio is 1.83, which is higher than 98% of readings from the past year, indicating a high level of pessimism among options traders [4]