Twenty-four brokerages assign Duolingo an average "Hold" rating. This consensus reflects a divergence between the company's financial performance and its stock valuation.
Duolingo recently posted a substantial quarterly earnings beat. EPS reached $5.95, significantly exceeding the expected $0.72. Revenue grew 41.1% year-over-year to $271.71 million.
Despite these strong results, the stock trades near its one-year low following a steep decline. The share price fell over 25% in the last 30 days. It dropped nearly 50% in the last 90 days.
The analyst ratings reflect a cautious outlook amidst the contrast between robust fundamental growth and negative market momentum.