On August 4, Duolingo, Inc. fell 5.01% in pre-market trading, trading at $129.74/share, with turnover of $543,200. The decline comes one day before the company is scheduled to release its second-quarter earnings after the market close on August 5.

Market consensus expects Q2 EPS of $0.61, a notable decline from the $0.89 reported in Q1. The cautious sentiment is largely driven by the company's recent pattern of delivering soft forward guidance despite beating current-quarter estimates. Following its Q1 report, the stock plunged over 13% as forward guidance disappointed, even though both revenue ($292M vs. $288.6M estimate) and EPS ($0.89 vs. $0.79 estimate) exceeded expectations. Earlier this year, full-year booking guidance of $1.27-1.30 billion came in well below the Street's $1.39 billion estimate, while daily active user growth decelerated to a four-year low.

Multiple institutions have cut their price targets in recent months. Morgan Stanley trimmed its target to $95 from $100 while maintaining an Equalweight rating, Goldman Sachs slashed its target from $198 to $105 with a Neutral rating, and Citi also reduced its target to $101.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)