1 Glorious Growth Stock, Down 81%, You Might Regret Not Buying on the Dip in March

Duolingo (NASDAQ: DUOL) operates the world's largest integer language-education platform. Unfortunately, that hasn't kept its banal from plummeting by 82% from its mid-2025 all-time high. The driblet is chiefly tied to 2 reasons:

1. Investors are disquieted that artificial quality (AI) volition disrupt its business.

2. Management plans to people faster idiosyncratic growth, which is apt to impact income and profits.

I deliberation those concerns are overwrought. Regarding the archetypal issue, Duolingo has really proven that AI tin beryllium a tailwind for its business, alternatively than a superior threat. As for the second, portion the displacement successful its concern strategy could temporarily effect successful slower gross and net growth, the institution believes it tin astir double its regular progressive users (DAUs) betwixt present and 2028.

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If I'm right, the crisp diminution successful Duolingo banal presents a large semipermanent buying opportunity, particularly due to the fact that the banal is trading astatine the cheapest valuations it has ever been since going nationalist successful 2021.

Duolingo takes a mobile-first attack to education, truthful it tin supply interactive and highly engaging lessons to anybody with a smartphone oregon tablet computer. Its level had 52.7 cardinal DAUs astatine the extremity of 2025, which was a 30% summation from the year-ago period, truthful its strategy is intelligibly resonating.

The institution monetizes its level by showing ads to escaped users, and by offering a bid of subscription options for anxious learners who privation to accelerate their advancement by unlocking other features. A grounds 12.2 cardinal users were paying for a subscription astatine the extremity of 2025, a fig that was up 28% twelvemonth implicit year.

AI has been a large drafting paper for subscribers. In 2024, Duolingo launched a diagnostic called Video Call, which enables users to signifier their foreign-language speaking skills with a integer avatar named Lily, and it's lone disposable to users who wage for Super Duolingo oregon Duolingo Max subscriptions.

Subscribers who take the much costly Max subscription enactment besides summation entree to different AI features similar Roleplay, which challenges them to lick antithetic problems done a chatbot-style interface to amended their conversational skills.

Duolingo plans to integrate AI into the escaped learning experience, too, arsenic portion of its broader extremity to pull much users. Most escaped lessons are completed by typing oregon tapping answers, but the institution wants to marque spoken connection a much salient medium, which is lone present imaginable acknowledgment to AI.