Core Insights - Duolingo, Inc. (NASDAQ: DUOL) reported its Q3 FY25 earnings, beating expectations on both revenue and earnings, yet the stock experienced a significant decline post-announcement [1]. Financial Performance - The company posted a beat on both its top and bottom lines, indicating strong financial performance despite the stock's negative reaction [1]. Market Reaction - Following the earnings report, the stock was "slaughtered," suggesting a disconnect between the company's financial results and market perception [1].

Core Insights - Duolingo, Inc. reported a revenue of $271.71 million for Q3 2025, marking a year-over-year increase of 41.1% and exceeding the Zacks Consensus Estimate of $260.52 million by 4.3% [1] - The company's EPS for the same period was $0.95, up from $0.49 a year ago, representing a surprise of 31.94% compared to the consensus estimate of $0.72 [1] Financial Performance Metrics - Total bookings reached $281.9 million, surpassing the four-analyst average estimate of $272.06 million [4] - Subscription bookings were $240.3 million, exceeding the average estimate of $231.89 million from three analysts [4] - Daily active users (DAUs) were reported at 50.5 million, slightly below the average estimate of 51.21 million [4] - Monthly active users (MAUs) totaled 135.3 million, compared to the average estimate of 136.2 million [4] - Paid subscribers at the end of the period were 11.5 million, in line with the average estimate of 11.51 million [4] - Subscription revenue was $229.5 million, representing a year-over-year increase of 45.6% and exceeding the average estimate of $220.91 million [4] - Other revenue, including advertising, was reported at $31.13 million, below the average estimate of $40.11 million [4] - In-app purchases generated $11.1 million, surpassing the average estimate of $9.83 million [4] - Advertising revenue was $21.02 million, compared to the average estimate of $19.54 million [4] - Revenue from the Duolingo English Test was $9.65 million, slightly below the average estimate of $10.17 million [4] Stock Performance - Duolingo's shares have returned -25.1% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Stocks fell on Thursday as Wall Street focused on corporate earnings [2] Qualcomm - Qualcomm's stock fell 4.76% after reporting fiscal fourth-quarter adjusted earnings of $3 per share on revenue of $11.27 billion, which exceeded expectations. The company anticipates fiscal first-quarter adjusted profit between $3.30 and $3.50 per share, with revenue projected between $11.8 billion and $12.6 billion, surpassing consensus estimates [3][5] AppLovin - AppLovin's stock rose 2.47% after reporting third-quarter earnings of $2.45 per share, beating estimates by 7 cents. The company's ad revenue reached $1.41 billion, exceeding expectations of $1.34 billion and marking a 68% increase year-over-year. For the fourth quarter, AppLovin expects revenue between $1.57 billion and $1.6 billion, higher than the $1.55 billion estimate [4] Arm Holdings - Arm Holdings' stock fell 2.54% despite reporting fiscal second-quarter earnings that surpassed analyst forecasts. The company expects adjusted profit of 41 cents per share on revenue of $1.23 billion for the current third quarter, exceeding Wall Street's expectations of 35 cents per share and $1.11 billion in revenue [6] Marvell Technology - Marvell Technology's stock rose 0.96% after reports that SoftBank Group explored a potential takeover of the chip company. The acquisition was intended to merge Marvell with Arm, but no agreement was reached [7] Tesla - Tesla's stock declined 4.94% as shareholders prepared for a vote on CEO Elon Musk's pay package during the annual meeting. The vote is expected to pass, although Norway's sovereign-wealth fund has publicly stated it will vote against Musk's compensation [7] Moderna - Moderna's stock gained 4.2% after reporting better-than-expected quarterly results, with a loss of 51 cents per share, which was narrower than the anticipated loss of $2.12. Revenue for the quarter was $1.02 billion, exceeding the $880 million estimate [8] DuPont - DuPont's stock rose 0.2% after the company reduced its full-year net sales forecast to $6.84 billion from $6.865 billion. The board authorized $2 billion in stock repurchases and declared a quarterly dividend of 20 cents per share [9] Airlines - Delta Air Lines, United Airlines, and American Airlines saw declines of 0.7%, 1.6%, and 1.4%, respectively, due to a 10% reduction in flight capacity at major U.S. airports amid a government shutdown affecting air-traffic controllers [10] Robinhood Markets - Robinhood's stock fell 7.7% despite reporting third-quarter earnings and revenue above analysts' expectations. However, transaction-based revenue of $730 million, a 129% increase year-over-year, missed projections [11] Snap - Snap's stock surged 16% after narrowing its third-quarter loss and announcing a $400 million deal with AI company Perplexity to integrate its technology into Snapchat. Revenue rose 10% to $1.51 billion, surpassing estimates [12] Datadog - Datadog's stock surged 19% after reporting third-quarter adjusted earnings of 55 cents per share, exceeding estimates of 45 cents. Revenue climbed 28% to $886 million, beating forecasts of $854 million [13] Celsius Holdings - Celsius Holdings' stock sank 23% due to concerns over the transition of its newly acquired Alani Nu business into PepsiCo's distribution network, which may impact inventory movements [14] CarMax - CarMax's stock tumbled 13% after announcing the departure of its CEO, Bill Nash, effective December 1. The board member David McCreight will serve as interim president and CEO while a search for a permanent replacement is conducted [14] DoorDash - DoorDash's stock declined 16% after missing third-quarter earnings expectations and announcing plans to invest several hundred million dollars more in new initiatives and platform development in 2026 compared to 2025 [15] Duolingo - Duolingo's stock plummeted 27% after forecasting fourth-quarter bookings of $329.5 million to $335.5 million, falling short of Wall Street estimates [15] E.l.f. Beauty - E.l.f. Beauty's stock sank 32% after issuing full-year guidance below Wall Street expectations, projecting adjusted earnings of $2.80 to $2.85 per share on sales of $1.55 billion to $1.57 billion, while analysts forecasted adjusted earnings of $3.53 on revenue of $1.65 billion [16]

Core Viewpoint - Duolingo Inc (NASDAQ:DUOL) reported strong financial results for the third quarter, but the performance fell short of analyst expectations, leading to a significant drop in stock price, which may present a contrarian investment opportunity [1][4]. Financial Performance - Duolingo's third-quarter revenue reached $271.7 million, exceeding the consensus estimate of $260.33 million, and representing a 41% year-over-year increase [2]. - Daily active users increased by 36% to 50.2 million, while monthly active users grew by 20% to 135.3 million [2]. Analyst Expectations - Analysts had projected daily active users to be 51.2 million and monthly users to reach 137.4 million, indicating that the actual figures did not meet expectations [3]. - Concerns were raised regarding the time it may take for the financial benefits of new AI-backed features to materialize [3]. Stock Performance - Following the earnings report, DUOL stock experienced a decline of over 39%, with a year-to-date decrease of 40% [4]. - The stock is currently viewed as heavily covered due to its significant drop, leading some analysts to argue that it represents good value [6]. Technical Analysis - Technical analysts suggest that DUOL stock has reached a support line, indicating a potential buying opportunity [6]. - The stock is in a 4-6-D formation, with four weeks of gains followed by six weeks of losses, suggesting a downward trend [12]. Price Projections - Using a quantitative analysis approach, the forward 10-week median returns for DUOL stock are projected to range between $187.50 and $207.50, with price clustering expected around $198 [11]. - The analysis indicates a potential price clustering around $208, suggesting a 5.05% positive delta in density dynamics [13]. Options Strategy - A suggested options strategy is the 200/210 bull call spread expiring on December 19, which could yield a maximum payout of nearly 144% if DUOL stock rises above the $210 strike price [17]. - The breakeven price for this strategy is set at $204.10, which is considered a realistic target under current market conditions [18].

Platform & Content Overview - Qualtrim is a stock analysis platform with over 11,000 paying members [1] - The content includes stock analysis, reactions to company news (e g Duolingo), and discussions of technology advancements (e g Google TPU) [1] - The content creator shares personal investment experiences, including successes and failures, with transparency [2] Investment & Portfolio Strategy - The content creator focuses on buying high-quality, long-term investments in world-class businesses, viewing them as businesses rather than stocks [2] - The content creator shares growth and dividend portfolio examples [2] Disclaimer & Risk Management - The content is for informational purposes only and not intended as investment recommendations [1] - The content creator is not a professional investor and advises viewers to consider their own financial situation, risk tolerance, and consult with financial advisors before making investment decisions [1][2] - Investment decisions are not guaranteed, and mistakes may occur [2] Resources & Links - The content provides links to the Qualtrim platform, favorite investing books, tech used for video recording, and sample portfolios [1][2] - The content creator shares social media links for more free content and random thoughts [2]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team operates from key finance and investing hubs, including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Expertise and Focus Areas - The company specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive delivers news and insights across various sectors, including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Viewpoint - Shares in language learning platform Duolingo, Inc. (Nasdaq: DUOL) are experiencing a significant decline this morning [1] Company Summary - Duolingo, Inc. is facing a sharp drop in its stock price, indicating potential concerns among investors regarding its performance or market conditions [1]

Core Viewpoint - KeyBanc downgraded Duolingo from Overweight to Sector Weight due to concerns over future bookings guidance despite strong earnings performance [1][6] Financial Performance - Duolingo's stock fell 20% after the third-quarter earnings report, even though it exceeded revenue and earnings per share expectations [2] - The stock is currently priced at $260.02, reflecting a decrease of $2.02 or approximately -0.77% [4] - Over the past year, the stock reached a high of $544.93 and a low of $256.63, with a market capitalization of approximately $11.9 billion [5] Competitive Landscape - Duolingo faces competition from other language learning platforms and emerging language learning models (LLMs), which may impact its growth and advertising revenue [1][3][6] Technical Analysis - Technical analysis indicates a potential further decline in Duolingo's stock price, suggesting it could fall to the range of $170 to $175 per share [4][6]

Group 1 - Disney (DIS) and Penn Entertainment (PENN) will end their exclusive ESPN Bet deal early, creating uncertainty for the sports-betting site [1] - DraftKings stock rebounded after reaching a two-year low, with earnings expected to be reported after market close [1] - Penn Entertainment's stock rose as the company aims to conserve cash and refocus on its regional casinos [1] Group 2 - The Dow Jones index experienced an increase on Thursday, while DoorDash, Duolingo, and ELF Beauty saw significant declines following their earnings reports [2] - Robinhood reported a doubling of revenue and more than tripled earnings, marking a 282% year-to-date increase [4] - DraftKings and Flutter have been downgraded as prediction markets are impacting their profit margins [4]

Core Insights - Duolingo Inc (NASDAQ: DUOL) reported a strong third-quarter performance, with revenue increasing by 40% year-over-year and significant expansion in profit margins [1] Financial Performance - Revenue growth of 40% year-over-year indicates robust demand for Duolingo's online language learning platform [1] - Profit margins have expanded significantly compared to the previous year, reflecting improved operational efficiency [1]