Update shared on05 Sep 2025
Fair value Decreased 6.74%Duolingo’s consensus price target was modestly reduced to $478.65 as analysts cite weaker-than-expected user growth trends, persistent competition risks, and recent social media setbacks, partially offset by confidence in the company’s growth prospects beyond language learning.
Analyst Commentary
- Decelerating user growth and indications that active users and subscribers are trending below consensus estimates have led bearish analysts to reduce targets and downgrade ratings.
- Persistent competitive risks, particularly from major tech companies and the robust current valuation, are causing some analysts to maintain neutral stances.
- Weakness in daily active user growth rates in recent quarters, in part due to social media pushback and a shift in social campaigns, has contributed to cautious sentiment despite some KPIs beating expectations.
- Bullish analysts cite Duolingo’s impressive historical growth, profitability, and prospects for continued expansion, particularly as the company moves into adjacent verticals like chess, math, and music.
- Despite headlines around new AI-powered competition, analysts generally believe Duolingo retains a product advantage due to its expertise in gamified language learning and breadth of languages offered, mitigating medium-term market disruption concerns.
Valuation Changes
Summary of Valuation Changes for Duolingo
- The Consensus Analyst Price Target has fallen slightly from $489.76 to $478.65.
- The Future P/E for Duolingo has fallen slightly from 82.18x to 80.46x.
- The Consensus Revenue Growth forecasts for Duolingo remained effectively unchanged, at 25.9% per annum.
Disclaimer
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