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Goldman Sachs Maintains Neutral on Duolingo, Slashes Target to $250

Duolingo, Inc. (NASDAQ:DUOL) is one of the best EdTech stocks to buy now.

On November 6, 2025, Goldman Sachs’ Eric Sheridan kept Duolingo at Neutral and cut the target to $250 from $425. His note framed the post-print debate: user growth cooled versus Q2, even as subscription monetization stayed strong (helped by Max and Family Plan), gross margin hovered near 72%, and newer subjects like Chess are scaling fast.

A day earlier, on November 5, Duolingo posted Q3 2025 revenue of $271.7 million, up 41% year over year, with daily actives above 50 million, up 36%. Management credited steady product upgrades and AI-assisted features for higher engagement and better conversion into paid tiers, while choosing to pace monetization to protect the app experience.

The outlook was raised, but Q4 guidance leaned conservative versus the momentum in the quarter, which cooled the stock and set up Goldman’s Neutral stance the next day.

Duolingo, Inc. (NASDAQ:DUOL) is headquartered in Pittsburgh. The company operates a freemium learning platform best known for languages and now branching into music and chess, layering paid tiers over an ad-supported base with increasingly AI-driven personalization.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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