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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.

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: 13 Best Beaten Down Stocks to Invest in According to Analysts and 14 Best Forever Stocks to Buy According to Hedge Funds.

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

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

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

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

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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