Core Insights - Duolingo Inc. is considered one of the best NASDAQ stocks to buy in 2026, with Jefferies raising its price target to $220 from $210 while maintaining a Hold rating [1] - DA Davidson lowered its price target on Duolingo to $205 from $220, maintaining a Neutral rating, despite improvements in active user numbers [2] - Concerns regarding AI disintermediation and high spending on growth could impact stock valuations in the future [1][3] User Growth and Market Expansion - Duolingo reported a 34% year-over-year increase in daily active users (DAU) in Q3 2025, with projections of nearly $1.2 billion in bookings for the full year, reflecting a 33% annual growth rate [3] - The company's expansion into Asia has been significant, with China becoming its second-largest market in terms of daily active users [3] - Despite positive growth, Duolingo anticipates a deceleration in DAU growth during Q4, with year-over-year growth of approximately 30% compared to 34% in Q3 [5] Product Diversification - A key factor in Duolingo's recent success is its diversification beyond language learning, particularly with the introduction of a chess course that has become the fastest-growing offering [4] - The chess content has attracted millions of users and has retention rates slightly higher than the core language products [4] - Duolingo is enhancing user engagement by rolling out a Player-vs-Player feature, currently available to 50% of iOS users, with an Android release expected soon [4]

Core Viewpoint - Mark Mahaney, a senior analyst at Evercore ISI, has identified his top internet stock picks for 2026, emphasizing investment opportunities in both large-cap and small/mid-cap companies [1] Group 1: Large-Cap Companies - Amazon is highlighted as a key investment opportunity among large-cap stocks [1] - Other large-cap names mentioned include Expedia, indicating a diverse range of potential investments within the sector [1] Group 2: Small/Mid-Cap Companies - Mahaney also points out promising small and mid-cap stocks, suggesting a balanced approach to investment across different market capitalizations [1] - Specific small/mid-cap companies were not detailed in the provided content, but the emphasis on this segment indicates potential growth opportunities [1]

Macroeconomic Trends & Geopolitical Shifts - The period from 1950-1990 is identified as an atypical era of Westernization and centralization [1] - The global economy's center of mass is shifting back to Eurasia, leading to a decline in the West's relative strength [2] - The West's living standards are heavily reliant on its continued absolute dominance, supported by the US dollar's status as the global reserve currency [3] - A decline from the undisputed 1 position could contract the tax base for dollar inflation from 1-3 billion globally to approximately 300 million Americans, potentially causing a 60-90% drop and increasing inflation [4] - Market participants are observed selling Western bonds and investing in Chinese bonds, gold, internet stocks, and internet currencies [7] - The 20th-century Western economy is being superseded by China and the Internet [7] Sovereign Debt & Financial Instability - Issues are shared across the entire G7, with France and the UK potentially requiring IMF bailouts [6] - Soaring yields are observed across the US, France, UK, Italy, Germany, and Japan, while Chinese yields are falling [6] - Western governments are perceived as bankrupt [8]