Duolingo (NASDAQ:DUOL) Stock Price Up 4.9% – What’s Next?

Duolingo, Inc. (NASDAQ:DUOL) was up 4.9% on Friday. The company traded as high as $165.30 and last traded at $165.16. 268,786 shares were traded during trading, a decline of 85% from the average daily volume of 1,786,045 shares. The stock had previously closed at $157.42.

Key Duolingo News

Here’s some of the latest news about DUOL:

• Positive Sentiment: Duolingo’s CEO said open-weight AI models have brought the cost of some tasks below one cent, which could support lower operating costs. He also argued that ChatGPT and live translation are not substitutes for Duolingo’s learning app, addressing concerns about AI competition. Article: CEO on AI costs Article: CEO on AI competition
• Negative Sentiment: Several law firms publicized a securities class action against Duolingo, with a December 7, 2026 deadline to seek lead-plaintiff status for investors who bought shares from May 2, 2025, through February 26, 2026. The complaint alleges misrepresentations about daily active-user growth and the sustainability of user expansion as the company shifted toward AI-generated lesson content; these remain allegations, not established findings. The litigation creates a potential legal and reputational overhang. Article: Securities class action allegations
• Negative Sentiment: News coverage says a proposed EU Digital Fairness Act could target app engagement features such as streaks and autoplay. Any impact is uncertain while the measure is still proposed, but possible restrictions could affect product design or engagement. Article: EU Digital Fairness Act

Analyst Ratings Changes

A number of brokerages have recently commented on DUOL. Compass Point assumed coverage on Duolingo in a research report on Tuesday, August 18th. They issued a “buy” rating on the stock. Wells Fargo & Company raised Duolingo from an “underweight” rating to an “equal weight” rating and raised their price objective for the company from $80.00 to $120.00 in a research report on Wednesday, November 4th. Craig Hallum lowered Duolingo to a “hold” rating in a research report on Tuesday, August 18th. KeyCorp upgraded Duolingo from a “hold” rating to an “overweight” rating in a research note on Tuesday, August 18th. Finally, Scotiabank boosted their target price on Duolingo from $120.00 to $140.00 and gave the stock a “sector perform” rating in a report on Wednesday, November 4th. Eight investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $148.75.

Duolingo Price Performance

The company has a quick ratio of 2.75, a current ratio of 2.75 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $7.80 billion, a PE ratio of 54.56, a PEG ratio of 1.24 and a beta of 1.08. The firm’s fifty day simple moving average is $146.17 and its 200-day simple moving average is $124.44.

Duolingo (NASDAQ:DUOL) last issued its earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.03). Duolingo had a return on equity of 10.35% and a net margin of 12.33%. The firm had revenue of $309.01 million during the quarter, compared to the consensus estimate of $303.20 million. During the same quarter in the prior year, the company posted $5.95 EPS. The company’s quarterly revenue was up 13.7% on a year-over-year basis. On average, research analysts forecast that Duolingo, Inc. will post 2.72 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Duolingo news, Director William B. Gordon sold 10,000 shares of Duolingo stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $145.67, for a total value of $1,456,700.00. Following the completion of the sale, the director owned 68,415 shares of the company’s stock, valued at approximately $9,966,013.05. This trade represents a 12.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Luis van Ahn sold 110,046 shares of the business’s stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $151.70, for a total value of $16,693,978.20. Following the completion of the transaction, the chief executive officer owned 110,046 shares of the company’s stock, valued at $16,693,978.20. This represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 264,440 shares of company stock valued at $39,697,193. Insiders own 16.62% of the company’s stock.

Institutional Investors Weigh In On Duolingo

Several large investors have recently bought and sold shares of DUOL. Bank of America Corp DE raised its holdings in Duolingo by 511.2% in the 1st quarter. Bank of America Corp DE now owns 1,332,301 shares of the company’s stock worth $131,325,000 after purchasing an additional 1,114,315 shares during the period. Marshall Wace LLP purchased a new position in Duolingo during the third quarter valued at $89,664,000. Amundi lifted its position in Duolingo by 1,351.7% during the first quarter. Amundi now owns 449,068 shares of the company’s stock valued at $44,265,000 after purchasing an additional 418,134 shares in the last quarter. Renaissance Technologies LLC lifted its position in Duolingo by 91.3% during the first quarter. Renaissance Technologies LLC now owns 603,806 shares of the company’s stock valued at $59,517,000 after purchasing an additional 288,252 shares in the last quarter. Finally, Pacer Advisors Inc. grew its holdings in Duolingo by 416.0% during the first quarter. Pacer Advisors Inc. now owns 238,458 shares of the company’s stock valued at $23,505,000 after purchasing an additional 192,245 shares during the period. 91.59% of the stock is currently owned by institutional investors.

About Duolingo

Duolingo, Inc. is an educational technology company best known for its mobile and web-based language-learning platform. The app offers courses in numerous languages and uses interactive lessons, practice activities and game-like features to help learners build skills. Founded in 2011 by Luis von Ahn and Severin Hacker, the company is headquartered in Pittsburgh, Pennsylvania, and serves learners around the world. Its products also include the Duolingo English Test, an online English-proficiency assessment, and learning apps focused on subjects such as math and music.