Duolingo Inc (NASDAQ: DUOL) stock traded higher on Friday after the company reported better-than-expected first-quarter financial results on Thursday. Wall Street analysts raised their price targets on the stock. Price targets were raised to $460 from $400.
Shares of language-learning app Duolingo (NASDAQ:DUOL)
jumped 18.6% in the afternoon session after the company reported strong first-quarter 2025 results, which significantly beat analysts' sales, earnings, and EBITDA expectations. Revenue rose 38% from the same period last year, led by a 45% increase in subscription revenue as more learners opted into premium plans like Duolingo Max. The real story was the record surge in user engagement, with daily active users jumping 49% and paid subscribers rising 40% year-over-year, showing that Duolingo continued to expand its footprint while keeping users coming back.
Zooming out, we think this was a solid print.
Language-learning app Duolingo (NASDAQ:DUOL) announced better-than-expected revenue in Q1 CY2025, with sales up 37.7% year on year to $230.7 million. Guidance for next quarter’s revenue was optimistic at $240 million at the midpoint, 2.6% above analysts’ estimates. Its GAAP profit of $0.72 per share was 39.3% above analysts’ consensus estimates.
Duolingo Inc. (NASDAQ: DUOL) has launched 148 new language courses, marking its largest expansion ever. The update more than doubles its existing catalog and makes top non-English languages like Spanish, French, and Mandarin available in all 28 interface languages. This rapid rollout, powered by generative AI, opens global access to language learning and benefits over a billion users worldwide.
The investment bank said Duolingo has the rare combination of rapid user growth, strong and expanding margins, and a clear generative artificial intelligence upside.
Shares of language-learning app Duolingo (NASDAQ:DUOL)
jumped 10.4% in the morning session after Morgan Stanley initiated coverage of the stock with a Buy rating, calling the company a "best-in-class consumer internet asset.". The firm also assigned a price target of $435, implying a potential 30% upside.
A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible."
His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
Duolingo's combination of user growth and subscription success makes it a standout EdTech innovator that is attracting significant investor attention globally.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at consumer subscription stocks, starting with Chegg (NYSE:CHGG).
Based on a technical and fundamental analysis of NASDAQ:DUOL we ask: Is DUOLINGO (NASDAQ:DUOL) on the Verge of a Major Breakout as a Strong Growth Stock?
