JPMorgan Trims Duolingo Target to $500 Amid DAU Slowdown

Duolingo, Inc. (NASDAQ:DUOL) is one of the best multibagger stocks according to hedge funds. On July 17, 2025, JPMorgan analyst Bryan Smilek lowered his price target for Duolingo from $580 to $500 while maintaining an “Overweight” rating, citing concerns about slowing growth in daily active users (DAUs) and subscription churn as the company heads into its second‑quarter earnings report on August 6.

Smilek highlighted that Sensor Tower data shows DAU growth decelerating to approximately 39% year-over-year in Q2 (down from ~51% in Q1), with monthly breakdowns of 41% in April, 40% in May, and 37% in June. He adjusted his forecasts accordingly, trimming Duolingo’s estimated DAU growth to 42% in Q2, 39% in Q3, and 40% in Q4, which sits at or below the company’s own guidance of 40–45%.

Despite the downgrade, Smilek advises investors to view the pullback as a potential opportunity, reaffirming JPMorgan’s belief in Duolingo’s long‑term leadership in language learning and strong financial health, including 72% gross margins and ~39% revenue growth.

Duolingo, Inc. (Nasdaq: DUOL) is a Pittsburgh-based ed‑tech company offering a gamified language-learning platform, monetized through subscriptions like Super Duolingo and AI-powered Duolingo Max, as well as the Duolingo English Test.

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Disclosure: None.