Duolingo User Growth Continues to Slow -- Market Talk

Dow Jones
Sep 04

0936 ET - Duolingo's active user growth continues to slow according to a D.A. Davidson proprietary dataset, says analyst Wyatt Swanson, who downgrades the stock to neutral from buy and lowers the price target to $300 from $500. The dataset shows active users have declined about 0.4% from mid-July to late August. That's a far cry from the average quarter-to-quarter increase (from 2Q to 3Q) of 7.2% daily active user growth over the past five years. "We expected a much more meaningful uptick in engagement following the return to school during August," Swanson says. The slowing user growth is primarily due to continued push-back from the company's AI-first strategy and minimal social media marketing. Duolingo falls 3% to $274 in early trading. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

September 04, 2025 09:36 ET (13:36 GMT)

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