DA Davidson has downgraded Duolingo Inc (DUOL) to Neutral from Buy, reflecting a cautious outlook on the company's future performance. The action, effective September 3, 2025, comes as Duolingo's current stock price stands at $168.51.
This revision suggests that analysts may be concerned about competitive pressures, market conditions, or execution risks that could affect the company's trajectory. Duolingo operates within the diversified consumer services sector, providing a language-learning platform through its mobile application and website.
Founded in 2021, the company has developed a freemium business model, allowing users to access its services at no cost while offering premium features for a subscription fee. It boasts a market capitalization of $9.2 billion and a P/E ratio of 78.68, with earnings per share (EPS) reported at 2.43.
Upcoming earnings announcements are scheduled for August 4, 2026, with an estimated EPS of $1.14 and revenue of $315.8 million. Recent performance has shown significant surprises in earnings, notably a Q3 2025 EPS of $5.95 compared to an estimate of $0.78, indicating a 663.9% surprise.
Analyst ratings serve as professional assessments based on extensive research and financial models. However, they should be viewed as one of many factors when making investment decisions, alongside company fundamentals and market trends. Analyst opinions can vary and are subject to change as new information emerges.