Why Duolingo (DUOL) Stock Is Down Today

Core Insights - Duolingo's shares fell 27.4% following a weaker-than-expected profit forecast for Q4, overshadowing strong Q3 results [1] - Q3 revenue was reported at $271.7 million with earnings of $5.95 per share, significantly exceeding Wall Street estimates [1] - The company's Q4 revenue guidance of approximately $275 million met expectations, but the EBITDA forecast fell short, indicating potential margin pressure [1] Market Reaction - The stock has shown extreme volatility, with 39 moves greater than 5% in the past year, indicating significant market impact from recent news [3] - A previous notable drop occurred 17 days prior due to an AWS outage affecting services and a price target cut by UBS from $500 to $450, citing slowing user growth [4] Performance Metrics - Duolingo's stock is down 43.5% year-to-date, trading at $184.18, which is 65.9% below its 52-week high of $540.68 from May 2025 [5] - An investment of $1,000 at the IPO in July 2021 would now be worth $1,325, reflecting the stock's performance since then [5]