Duolingo Shares Fall Despite Faster User Growth Than Bookings in Q2

Faruqi & Faruqi on Sunday flagged it’s probing potential investor claims tied to Duolingo Inc., after shares slumped. The firm joins others issuing alerts as Duolingo’s stock lost ground, following management’s push for user growth and a bigger bet on artificial intelligence—even if that means slowing monetization for now. February’s drop came after Duolingo said it would channel more resources into AI and aim for 100 million daily active users by 2028, accepting softer profits in the near term.

Duolingo’s stock has experienced whiplash in 2025. After a strong first half, DUOL tumbled nearly 50% from summer highs, erasing most of its prior 12-month gainsmarketbeat.com. Over the past three months the stock slid 35%, dramatically underperforming both the edtech industry and the S&P 500 in that spannasdaq.com. This “nasty slide” sent shares down toward the $280s by late Septembermarketbeat.com. Investors grew skittish over post-pandemic user trends and fears that emerging AI tools could steal Duolingo’s thundermarketbeat.com.