Duolingo shares are trading slightly higher around $175.40, defying a recent downgrade by Wells Fargo, which maintained an Underweight rating while cutting its price target due to concerns over user growth momentum.
- Wells Fargo significantly cut its price target for the stock, moving it from $185.00 down to $160.00.
- The firm cited weaker third-party data, trimming its estimate for Q4 daily active user growth to 27% year-over-year, below the 30% consensus.
- Analysts argued that Duolingo still lacks the necessary product “hits” required to reaccelerate growth momentum.