Evercore ISI Reduces PT on Duolingo (DUOL) Stock

Duolingo, Inc. (NASDAQ:DUOL) is one of the Worst Performing Stocks to Invest in on the Dip. On November 14, Evercore ISI reduced the price objective on the company’s stock to $330.00 from $540.00, while maintaining an “Outperform” rating. As per the firm, Duolingo, Inc. (NASDAQ:DUOL) indicated a near-term strategic transition towards prioritizing user growth over monetization, resulting in the subdued outlook.

Evercore ISI Reduces PT on Duolingo (DUOL) Stock

Also, while the feared softness in DAU results did not take place, the company gave a conservative commentary about the EBITDA margin expansion goals, added Evercore ISI.

For Q4 2025, the company expects an adjusted EBITDA margin of 28.0% at the midpoint, demonstrating continued investment in product-led AI initiatives and marketing. Duolingo, Inc. (NASDAQ:DUOL)’s revenues rose by $79.1 million, or 41% YoY, to $271.7 million during Q3 2025, reflecting subscription revenue growth of 46% mainly due to a higher average number of paid subscribers.

The company’s net income rose from $23.4 million in Q3 2024 to $292.2 million in Q3 2025. Its net income was aided by the release of valuation allowance of certain deferred tax assets of $222.7 million. For Q4 2025, Duolingo, Inc. (NASDAQ:DUOL) expects bookings of between $329.5 million – $335.5 million and revenues of $273 million – $277 million.

While we acknowledge the potential of DUOL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DUOL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.