Duolingo, Inc. (DUOL): A Bull Case Theory

We came crossed a bullish thesis connected Duolingo, Inc. connected wallstreetbets subreddit by Significant_Papaya28. In this article, we volition summarize the bulls’ thesis connected DUOL. Duolingo, Inc.'s stock was trading astatine $191.41 arsenic of November 28th. DUOL’s trailing and guardant P/E were 24.11 and 47.17 respectively according to Yahoo Finance.

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Duolingo (DUOL), the connection learning app wide recognized by its iconic greenish owl, is presenting a compelling contrarian concern accidental arsenic its banal has fallen sharply from $542. Market fears of contention from OpenAI and Google, coupled with nationalist misperception astir Duolingo’s adoption of AI, person driven a communicative that the company’s maturation is astatine risk. Despite these concerns, Duolingo’s fundamentals stay strong.

The institution continues to turn revenues and escaped currency travel astatine a robust pace, with Q2 2025 gross up 41% YoY to $252.3 cardinal and escaped currency travel rising 61% YoY to $86.3 million. Subscription maturation is peculiarly notable, up 46% YoY, reflecting beardown engagement and a loyal idiosyncratic basal present exceeding 128 cardinal monthly progressive users.

While Duolingo lacks a accepted moat, its planetary marque designation and superior idiosyncratic acquisition relation arsenic a de facto competitory advantage, akin to what Spotify and Netflix person achieved successful their respective markets. The company’s subscription-based model, augmented by advertizing revenue, is highly scalable and present expanding beyond connection learning into music, math, chess, and different acquisition content, further enhancing the platform’s worth proposition. AI integration accelerates people creation, enabling accelerated contented enlargement portion maintaining debased operational friction and minimal regulatory exposure.

Valuation metrics person corrected from utmost levels, with the P/E present astatine 122 and price-to-sales astatine 15x, yet maturation remains strong, averaging 40% YoY historically. Forward guidance projects astir 35% growth, suggesting the marketplace is pricing successful overly pessimistic assumptions. If the institution continues executing and leveraging AI to grow its acquisition ecosystem, Duolingo’s banal could spot important upside, offering a high-risk, high-reward accidental for investors consenting to instrumentality a contrarian position.

Previously we covered a bullish thesis connected Duolingo, Inc. (DUOL) by Lorenzo Bastianelli successful May 2025, which highlighted the company’s Q1 maturation driven by viral marketing, AI-enhanced courses, rising engagement, and paid subscriber expansion. The company's banal terms has depreciated astir by 61.98% since our coverage. The thesis inactive stands arsenic Duolingo continues expanding content. Significant_Papaya28 shares a akin position but emphasizes the diminution arsenic a buying accidental based connected beardown fundamentals.