Weak outlook for Duolingo

2 months ago

Billy Lip Schultz

"Duolingo. See, so sensing a theme, tech stocks that start with the letter D right now. Duolingo, ticker D, down 27%, the biggest drop since they went public in the summer of 2021. The language learning software company giving a weak fourth quarter bookings forecast. Analysts saying that kind of the management focus on user growth, wanting to expand the number of users has weighed on their bookings outlook. We saw at least two analysts downgrading shares, Citizens and Key Bank. This stock down 27%. Basically, another company that when you look at how they've been pushing into and leaning into AI, not really panning out."

The speaker describes a sharp 27% decline in Duolingo's stock, citing a weak Q4 bookings forecast and analyst downgrades as key drivers. The commentary points to execution challenges in their AI initiatives and a fundamental misalignment in management focus, contributing to the negative outlook.

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