Evercore ISI Reduces PT on Duolingo (DUOL) Stock

Duolingo, Inc. (NASDAQ:DUOL) is one of the Worst Performing Stocks to Invest in on the Dip. On November 14, Evercore ISI reduced the price objective on the company’s stock to $330.00 from $540.00, while maintaining an “Outperform” rating. As per the firm, Duolingo, Inc. (NASDAQ:DUOL) indicated a near-term strategic transition towards prioritizing user growth over monetization, resulting in the subdued outlook.

Also, while the feared softness in DAU results did not take place, the company gave a conservative commentary about the EBITDA margin expansion goals, added Evercore ISI.

For Q4 2025, the company expects an adjusted EBITDA margin of 28.0% at the midpoint, demonstrating continued investment in product-led AI initiatives and marketing. Duolingo, Inc. (NASDAQ:DUOL)’s revenues rose by $79.1 million, or 41% YoY, to $271.7 million during Q3 2025, reflecting subscription revenue growth of 46% mainly due to a higher average number of paid subscribers.

The company’s net income rose from $23.4 million in Q3 2024 to $292.2 million in Q3 2025. Its net income was aided by the release of valuation allowance of certain deferred tax assets of $222.7 million. For Q4 2025, Duolingo, Inc. (NASDAQ:DUOL) expects bookings of between $329.5 million – $335.5 million and revenues of $273 million – $277 million.

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Disclosure: None. This article is originally published at Insider Monkey.