Duolingo | A personal story

The article details an analyst's investment journey with Duolingo, initiated in January 2022 based on an undervalued growth trajectory. Despite selling a portion in late 2023 due to valuation concerns after a significant price increase, the analyst doubled their stake in November 2025 at $166, citing a favorable risk/reward profile after a 75% price drop from its peak. The core investment thesis rests on Duolingo's durable competitive advantages, including its vast dataset on language learning, strong habit-forming product design, and strategic use of AI as a tool to enhance pedagogy rather than being replaced by it. A valuation scenario suggests that with revenue growth tapering to 10% and net margins expanding to 25% over ten years, the stock could generate an approximate 15% annual return.