Duolingo’s earnings beat, AI strategies, and monetization momentum have boosted Wall Street’s confidence.
Duolingo Inc. (DUOL) has gained Wall Street’s confidence as analysts raised their expectations following a beat-and-raise second-quarter (Q2) earnings report. Retail sentiment on the stock hit a year-high mark on Stocktwits on Thursday.
Nathan Feather, an analyst at Morgan Stanley, increased the price target on Duolingo shares to $500 from $480, reiterating an ‘Overweight’ rating, as per TheFly.
Duolingo stock traded over 34% on Thursday morning. Retail sentiment around the stock remained in ‘extremely bullish’ (94/100) territory, and the message volume improved to ‘extremely high’ (90/100) from ‘high’ levels in 24 hours.
The stock experienced a 1,407% surge in user message count over 24 hours. A bullish Stocktwits user lauded the earnings.
Feather said Duolingo beat expectations across revenue and engagement metrics, particularly highlighting daily active users coming in ‘well ahead of buy-side expectations’. The brokerage believes U.S. market softness is temporary and sees long-term benefits from monetization gains and improving margins.
JPMorgan analyst Bryan Smilek increased the price target to $515 from $500 while maintaining an ‘Overweight’ rating. Smilek pointed to improved user stability and Duolingo’s consistent performance above Q2 guidance.
He remains optimistic about the company’s strategies on artificial intelligence.
Barclays also lifted the price target on the stock to $390 from $375 but kept an ‘Equal Weight’ rating. While Q2 metrics mostly came in strong, the firm flagged deceleration in daily active user growth, now at 40%, as a concern.
The company’s Q2 revenue and earnings per share (EPS) of $252.3 million and $0.91, both beat the analysts’ consensus estimate of $240.7 million and $0.58, respectively, as per Fiscal AI data.
Duolingo stock has gained over 36% in 2025 and over 172% in the last 12 months.
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