Core Viewpoint - Duolingo's stock is experiencing a significant decline despite reporting strong third-quarter earnings, primarily due to weaker-than-expected forward guidance and a strategic shift [2][7]. Financial Performance - Duolingo reported earnings per share of $5.95 on sales of $271.7 million for Q3, exceeding analyst expectations of $0.76 EPS and $260.35 million in sales [4]. - Revenue for the quarter was approximately 41% higher than the same period last year, with the company surpassing 50 million daily active users [5]. Guidance and Market Reaction - For Q4, Duolingo expects sales between $273 million and $277 million, which is above the average analyst target of $274.4 million [6]. - However, the company's guidance for bookings between $329.5 million and $335.5 million fell short of the average estimate of $344.1 million, indicating potential challenges ahead [6][8]. - The stock price dropped 26% during trading, reflecting a broader market decline and a significant valuation pullback following the Q3 results [1][2].