Early Bird Prime for August 23, 2026

Duolingo $DUOL ( ▼ 0.61% ) is the app that has convinced millions of us that we can become fluent in French while waiting for our coffee to brew. But should you invest in the company behind the adorable green owl? In 2026, Duolingo's stock has taken a nosedive, down 17.20% this year alone. The company has decided to prioritize daily active user expansion over near-term profit margins.

In the past 12 months, Duolingo's stock has plummeted nearly 56%, and after reaching its all-time high in May 2025, it's now down a staggering 72%. Investors are jittery, worried about the potential long-term disruption from artificial intelligence.

But just when you thought the stock was destined for a permanent decline, it suddenly jumped 10% this week. Why? Because someone at an investing meeting "inadvertently displayed" some juicy info about a 27.4% growth in daily active users. Oopsie daisy! It’s a very lucky slip.

The next day, a DA Davidson analyst upgraded Duolingo's stock from neutral to buy, raising the share price forecast from $130 to $160.

Meanwhile, Duolingo is rolling out its new AI-powered Video Call feature to Super subscribers. If this AI magic makes learning more effective, it could boost retention, word-of-mouth acquisition, and premium-tier conversion. 

Duolingo's social media game is strong, generating over 1 billion organic impressions per quarter. It's like the company has a secret recipe for viral content. The broader creator activity has expanded its reach in markets like China, Indonesia, and India, while its performance-marketing capabilities are getting a glow-up. With a largely organic acquisition engine, Duolingo is making user growth scalable.

Should you buy Duolingo's stock right now in 2026, or should you avoid it? Here’s the answer…