I have followed Duolingo (NASDAQ: DUOL) stock since it went public in 2021, but I didn’t actually buy it until March of this year.
It was down by more than 79% from its June 2025 record high when I decided to dive in at a time when most investors were fretting over two potential headwinds for its business
Duolingo operates the world’s largest digital language education platform. Management recently announced a plan to focus on user growth for the next couple of years, which has already caused a slowdown in the company’s revenue and earnings growth. At the same time, there have been concerns that artificial intelligence (AI) could disrupt the platform’s success.
Personally, I think Duolingo’s renewed focus on user acquisition will yield significant long-term rewards for shareholders, and I also believe AI will be a tailwind, not a threat, to its business. The stock has already jumped 25% from my initial purchase price of around $90, and while it’s way too early to declare victory, here’s why I think significantly more upside could be ahead. AI is enhancing the learning experience Duolingo’s success stems from its mobile-first approach, which puts language education at the fingertips of practically anyone with a smartphone.