Duolingo shares rose 3% in Monday trading after soaring 22% in previous trading day.

The company reported better-than-expected first-quarter earnings and lifted its full-year guidance last Friday.

Revenue and earnings came in above Wall Street expectations.

The language learning platform posted revenue of $230.7 million, up 38% from a year ago, and earnings per share of $0.72, both ahead of Visible Alpha estimates.

Paid subscribers grew 40% to 10.3 million, and daily active users climbed to 46.6 million, up nearly 50% year over year. Duolingo also raised its full-year revenue guidance to between $987 million and $996 million, up from its prior range of $962.5 million to $978.5 million.

JPMorgan maintained its overweight rating and raised its price target to $500 from $360. The firm expects continued growth in DAUs as Duolingo expands beyond languages, including an upcoming chess course.

Duolingo plans to add 148 new language coursesmore than doubling its current librarywhile relying heavily on generative AI to create and personalize educational content.

JPMorgan expects Duolingo's content expansion and AI-powered scalability to drive long-term subscriber and revenue growth.