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Buy Or Sell Duolingo Stock?
Forbesยท 2025-09-16 14:00
Group 1 - Duolingo's stock has decreased by 22.8% in less than a month, from $369.19 on August 18, 2025, to $285.11 currently, due to concerns over slowing active user growth and competition from AI-driven alternatives like Google's language tools and Apple's real-time translation feature in AirPods [1][2][4] - Historically, Duolingo has delivered a median return of 87% over one year and has shown a peak return of 87% after declines greater than 30% within 30 days [4][6] - The company offers a language-learning platform with courses in 40 languages, primarily targeting users in the U.S. and China [4] Group 2 - Duolingo has encountered five instances since January 1, 2010, where the stock experienced a dip of 30% or more within 30 days [5][6] - The median peak return following a dip event is 87%, with a median duration of 356 days to reach that peak [6] - Financial quality checks indicate that revenue growth, profitability, cash flow, and financial stability are essential to assess the business condition during dips [7]