Duolingo After The Bookings Reset: Fair Value With Rebound Optionality

Core Insights - Duolingo, Inc. (DUOL) experienced a significant decline from its peak in May 2025, which can be divided into two phases, with the first phase leading up to Q3 2025 earnings and a substantial reset in bookings [1] Group 1: Company Performance - The decline in Duolingo's stock price reflects a broader trend in the company's financial performance, particularly influenced by the earnings report and updated guidance [1] Group 2: Market Trends - The analysis indicates that the market's reaction to Duolingo's earnings and guidance has been critical in shaping investor sentiment and stock valuation [1]