Duolingo falls on slower growth outlook despite strong quarter

Duolingo

05/05/2026 09:12

** Shares of language-learning platform Duolingo DUOL.O fall 12.5% to $96.49 premarket

** Co posts strong first-quarter results but signals a more measured growth trajectory as it prioritizes user engagement and product improvements over near-term monetization

** J.P. Morgan raises target price by $2 to $94; maintains "neutral" stance

** Brokerage says, overall, "2026 remains an investment year as DUOL prioritizes user growth, which we believe should fundamentally improve medium-term user scale & monetization"

** Co beat Q1 revenue estimates, driven by 21% growth in paid subscribers

** Twenty-five analysts rate the stock "hold" on average; median price target $100 - data compiled by LSEG

** Up to previous day's close, the stock had fallen nearly 37% YTD

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))