Duolingo (DUOL) announced third-quarter earnings and revenue that surpassed analyst expectations, with earnings per share of $0.95 beating the consensus estimate of $0.72. [2] The company also reported a significant increase in daily active users, exceeding 50 million. [7] Despite the strong quarterly performance, the company's fourth-quarter bookings forecast fell short of Wall Street estimates. [5] Duolingo's management attributed the weaker outlook to a strategic decision to prioritize long-term user growth and product improvements over immediate monetization efforts. [3, 10] The disappointing guidance triggered a sharp sell-off in after-hours trading, with the stock falling as much as 20%. [5, 10] The negative market reaction continued on November 6, 2025, as analysts responded to the news. Needham maintained a "Buy" rating but significantly lowered its price target from $460 to $300, while Evercore ISI also cut its target, citing the guidance and high valuation. [1, 10]