Duolingo AI Price Prediction

The combination of a relatively low PE ratio of 14.16 and strong EPS of 7.94 suggests Duolingo is currently profitable and trading at a modest earnings multiple versus its historical growth profile. This implies the market has sharply de-rated the stock despite solid underlying earnings power, creating a more attractive valuation backdrop. While we lack full income-statement detail, the earnings metrics point to improving scale and margin leverage rather than a deteriorating core business.

• A PE ratio of 14.16 on EPS of 7.94 implies the market is assigning a relatively conservative multiple to a still high-growth, asset-light digital platform, which is supportive for long-term upside if growth persists.
• Positive EPS indicates Duolingo has moved beyond the cash-burning phase into sustainable profitability, suggesting operating leverage is beginning to show through the model.
• Given the scale of web traffic and app downloads, the current earnings level likely reflects early monetization of a large user base, leaving room for further revenue and margin expansion over time.

Alternative data show a platform with massive reach and stable-to-growing engagement. Web traffic is very high, daily app downloads exceed 5 million with positive month-over-month growth, and job postings are up sharply, indicating ongoing investment and confidence in future growth. Social media followings are large and generally stable or modestly rising, reinforcing Duolingo’s strong brand presence.

• Estimated 56.4 million monthly web visitors and 5.14 million daily app downloads (up 0.2% MoM) indicate robust top-of-funnel demand and continued user acquisition at scale, supportive of future revenue growth.
• Job openings at 79, up 43.6% month over month, signal management is investing in headcount—often a leading indicator of product expansion, R&D, and long-term growth expectations rather than retrenchment.
• Social media presence is very large across platforms (e.g., 17M TikTok, 6.6M YouTube, 4.8M Instagram) with mostly flat to modestly positive growth, suggesting sustained brand relevance and marketing reach despite recent stock price weakness.

Fundamentals and alternative data point to a healthy, growing platform business, while the stock has undergone a severe de-rating and is technically oversold. This disconnect between operational strength and market sentiment leans toward a constructive long-term view, albeit with elevated near-term volatility. Overall, the setup appears bullish for investors with a multi-quarter horizon who can tolerate technical and sentiment-driven swings.

• Operational signals—profitability, massive user scale, steady download growth, and rising hiring—are inconsistent with the severity of the recent share price decline, suggesting sentiment rather than fundamentals is driving the sell-off.
• With the stock deeply below its 200-day moving average, an extremely low RSI, and a modest earnings multiple, Duolingo appears positioned for potential recovery as technical pressure abates and investors refocus on the company’s growth and earnings trajectory.