Prediction: This Magnificent Growth Stock Is Going to Double by 2027, and Here's the Math That Shows How

Duolingo (NASDAQ: DUOL) operates the world's largest integer connection acquisition platform. Its banal surged during 2024 and 2025 to deed a grounds precocious of astir $540 successful May of past year, but it has since plummeted by much than 75% amid concerns that artificial intelligence-powered translation tools could trim request for connection lessons.

Plus, Duolingo's enforcement squad precocious made a concern determination to prioritize idiosyncratic maturation implicit the adjacent mates of years, astatine the disbursal of monetization. As a result, Wall Street is pricing successful little gross and net growth, which has further contributed to the stock's decline.

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However, I deliberation the sell-off is overdone. Duolingo has already proven it tin usage AI to amended its platform, and focusing connected idiosyncratic maturation successful the adjacent word could pb to importantly higher gross implicit the agelong term. The banal is present incredibly cheap, truthful here's wherefore I foretell it volition treble by the clip 2027 rolls around.

AI could beryllium a tailwind, not a risk, for Duolingo

Duolingo's mobile-first attack and highly interactive lessons are the secrets to its success. Around 56.5 cardinal radical utilized its app each azygous time during the archetypal quarter, and portion astir of them were escaped users whom the institution monetized done advertising, 12.5 cardinal users were paying for subscriptions to unlock other features.

A increasing fig of those features are powered by AI. Users who wage for a Super Duolingo oregon Duolingo Max program tin entree Video Call, which features a integer avatar that helps them signifier their overseas connection speaking skills. During the archetypal quarter, the fig of spoken words per idiosyncratic who engaged with this instrumentality much than doubled compared to the year-ago period, truthful it's intelligibly proving to beryllium popular.

Because of the occurrence of Video Call, Duolingo plans to present much speaking-based lessons for escaped users to summation the platform's popularity. This is 1 of the ways the institution is sacrificing monetization successful the abbreviated run: Making speaking-based tools much wide disposable volition diminish the worth of paid features similar Video Call, but it could importantly summation the platform's wide idiosyncratic basal successful the agelong run.

A increasing idiosyncratic basal volition beryllium a nett affirmative implicit the agelong word

Management's determination to sacrifice monetization successful favour of faster idiosyncratic maturation is already having a antagonistic interaction connected Duolingo's fiscal performance. Revenue accrued by 27% twelvemonth implicit twelvemonth during the archetypal quarter, which was a coagulated effect astatine look value, but a deceleration from its 38% maturation successful the aforesaid 4th of 2025.