Is Duolingo (DUOL) One of the Best Beaten-Down Technology Stocks to Buy According to Hedge Funds?

Duolingo, Inc. (NASDAQ:DUOL) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 18, J.P. Morgan analyst Bryan Smilek reaffirmed a Buy rating on Duolingo, Inc. (NASDAQ:DUOL) with a $300 price target, signaling confidence in the company’s long-term growth prospects.

Earlier, on December 3, DA Davidson trimmed its target to $205 from $220 while keeping a Neutral stance. The firm’s adjustment followed an analysis of roughly 170,000 Duolingo users, which showed steady gains in daily activity during October and November compared to the prior quarter. User growth is tracking at about 29% year-over-year, broadly in line with consensus expectations, and supports Duolingo’s strong revenue momentum of nearly 40% over the past year, with forecasts of 38% growth for the current fiscal year.

DA Davidson also reviewed Duolingo’s chess expansion but found limited traction among Chess.com users, suggesting that a partnership or acquisition could strengthen retention in that segment. The revised price target reflects a valuation of 6.7x Duolingo’s projected 2026 enterprise value to revenue, a more conservative outlook despite growth holding steady. For now, DA Davidson remains cautious, maintaining Neutral until there is clearer evidence that Duolingo can sustain user growth ahead of expectations, while J.P. Morgan continues to see meaningful upside.

Duolingo, Inc. (NASDAQ:DUOL), headquartered in Pittsburgh, delivers a freemium learning platform centered on languages and expanding into music and chess, blending ads, paid tiers, and AI personalization.

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