On August 14, Duolingo, Inc. fell 5.31% in regular trading, trading at $136.205/share, with turnover of $18.74 million.

On the news front, the stock gave back gains from the prior session's 5.21% rally triggered by the announcement of its acquisition of UK award-winning animation studio Animade. With the acquisition euphoria fading, investors shifted attention back to the company's soft Q3 revenue guidance. Duolingo reported Q2 revenue of $298.5 million, beating the $295.6 million consensus estimate, and EPS of $0.66 versus the $0.61 estimate. However, Q3 revenue growth guidance of approximately 11.1% came in below market expectations, while paid subscriber counts also slightly missed consensus, triggering a nearly 10% post-earnings decline on August 6.

Adding to the pressure, BofA Securities had recently downgraded the stock to Underperform with a $93 price target, citing elevated valuation premiums relative to comparable subscription companies and questioning the sustainability of user growth and monetization capabilities. UBS maintained a Buy rating but set a target of $150, reflecting mixed analyst sentiment on the stock's outlook.

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