Goldman Sachs Maintains Neutral on Duolingo, Slashes Target to $250

Duolingo, Inc. (NASDAQ:DUOL) is one of the best EdTech stocks to buy now.

On November 6, 2025, Goldman Sachs’ Eric Sheridan kept Duolingo at Neutral and cut the target to $250 from $425. His note framed the post-print debate: user growth cooled versus Q2, even as subscription monetization stayed strong (helped by Max and Family Plan), gross margin hovered near 72%, and newer subjects like Chess are scaling fast.

A day earlier, on November 5, Duolingo posted Q3 2025 revenue of $271.7 million, up 41% year over year, with daily actives above 50 million, up 36%. Management credited steady product upgrades and AI-assisted features for higher engagement and better conversion into paid tiers, while choosing to pace monetization to protect the app experience.

The outlook was raised, but Q4 guidance leaned conservative versus the momentum in the quarter, which cooled the stock and set up Goldman’s Neutral stance the next day.

Duolingo, Inc. (NASDAQ:DUOL) is headquartered in Pittsburgh. The company operates a freemium learning platform best known for languages and now branching into music and chess, layering paid tiers over an ad-supported base with increasingly AI-driven personalization.

While we acknowledge the potential of DUOL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None.