Why is Duolingo (DUOL) Down 26% Since Q3 2025 Results

​Duolingo, Inc. (NASDAQ:DUOL) is one of the Best Mid Cap Tech Stocks to Buy According to Analysts. On November 5, Duolingo, Inc. (NASDAQ:DUOL) posted results for its fiscal Q3 2025. The revenue grew 41.08% year-over-year to $271.71 million, surpassing the estimates by $11.36 million and the EPS of $5.95 also topped the consensus by $5.19. However the share price has fallen more than 26% since the release.

​The key reasons behind the falling investor and analyst sentiment are the company’s strategy to prioritize product development, which has raised monetization concerns. Moreover, the company’s bookings outlook for the next quarter of $329.5 million to $335.5 million also fell short of Bloomberg’s estimates of $344.1 million.

​Wall Street has also adopted a conservative outlook on the stock since the release. On November 7, Wyatt Swanson from D.A. Davidson lowered the firm’s price target from $300 to $200, while reiterating a Hold rating on the stock. The analyst noted that Duolingo, Inc.’s (NASDAQ:DUOL) shift in strategic focus suggests that the firm might need to revise 2026 estimates downwards from revenue growth of 25.8% year-over-year and adjusted EBITDA margin of 32.1%.

​Duolingo, Inc. (NASDAQ:DUOL) offers a mobile and web-based language learning platform with courses in over 40 languages, operating on a freemium model with premium subscription options.

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. This article is originally published at Insider Monkey.