How Buying Duolingo Today Could 10x Your Net Worth

Core Viewpoint - Duolingo's 70% stock price drop is seen as unjustified given its strong fundamentals and potential for significant returns, particularly as it prepares to report earnings on February 26 [1][9]. Company Performance - Duolingo's stock price fell from over $500 per share last year to approximately $100 per share, indicating an overreaction by the market [2]. - The company has over 50 million daily active users and reported a 41% year-over-year revenue growth in Q3 [8]. - The total number of paid subscribers increased by 34% year-over-year, reaching 11.5 million in Q3 [8]. Market Concerns - Investors are worried that advancements in AI could render Duolingo obsolete, especially with competitors like T-Mobile introducing features that translate languages in real-time [4][5]. - AI models such as ChatGPT and Grok are perceived as threats, as they can provide language learning resources and quizzes [5][7]. Industry Context - The fear surrounding AI's impact on language learning is not new, as AI technologies have been available for several years, and Duolingo has continued to grow despite these advancements [7]. - The fastest-growing subject on Duolingo's platform is chess, indicating diversification beyond traditional language learning [8].