DUOL Stock Analysis: Buy, Sell, or Hold?

DUOL - Duolingo, Inc. Class A Common Stock

SERVICES-PREPACKAGED SOFTWARE
$134.06
-5.41 (-3.88%) β–Ό
WAIT
LOW Confidence
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Last Updated: January 30, 2026
Earnings: Feb 26, 2026 24d

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
⏸️ WAIT FOR STABILIZATION: DUOL is down 14.1% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$76.02
Based on -14.8% avg growth
INTRINSIC VALUE TODAY
$47.20
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 22.7x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: DUOL is currently trading at $134.06, which is considered oversold relative to its 30-day fair value range of $148.67 to $179.81. From a valuation perspective, the stock is trading at a discount (Forward PE: 16.9) compared to its historical average (22.7). Remarkably, the market is currently pricing in an annual earnings decline of 9.3% over the next few years. This pessimistic expectation contrasts with the company's recent 1114.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, DUOL is in a strong downtrend. The price is currently testing key support at $133.50. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 3.9% recently.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $252.17 (+88.1%). Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position OVERSOLD
Fair Price Range $148.67 - $179.81
Company Quality Score 46/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 74.8%

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All Signals

  • BULLISH: Price oversold vs 30-day range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BEARISH: Downward momentum (-3.9%)
  • BULLISH: Trading 88.1% below Wall St target ($252.17)
  • WARNING: Recommendation downgraded due to -14.1% 5-day decline - wait for stabilization

Fair Price Analysis

30-Day Fair Range $148.67 - $179.81
Current vs Fair Value OVERSOLD

Support & Resistance Levels

Support Level $133.50
Resistance Level $161.28
Current Trend Strong Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 16.95
Wall Street Target $252.17 (+88.1%)
Revenue Growth (YoY) 41.1%
Earnings Growth (YoY) 1114.3%
Profit Margin 40.0%
Valuation Discount vs History -9.3% cheaper
PE vs Historical 17.0 vs 22.7 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -9.3% (market-implied from PE analysis)
1-Year Target $121.59 (-9%)
2-Year Target $110.28 (-18%)
3-Year Target $100.03 (-25%)
3-Yr Target (if PE normalizes) (PE: 17β†’23) $134.00 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: -33.5%) $128.61 (+-4%)
Base: (SPY PE: 16.9, Growth: -33.5%) $97.73 (-27%)
Bear: (PE: 14.4, Growth: -33.5%) $83.07 (-38%)
πŸ“ˆ Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 17.98 | Current EPS (TTM): $7.94
Bull Case $156.51 (+17%)
Analyst growth -0.4%, PE expands to 19.8
Base Case $142.28 (+6%)
Market implied -0.4%, PE stable at 18.0
Bear Case $97.10 (-28%)
Severe decline -20.0%, PE contracts to 15.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
πŸ’‘ Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 16.9 to 22.7
Stabilization Target: $179.58 (+34.0%)
PE Expansion Potential: +34.0%
Last updated: February 01, 2026 12:12 PM ET
Data refreshes hourly during market hours. Next update: 1:12 PM
πŸ”₯ Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
13
Sells
Net
INSIDERS SELLING
Recent Transactions
Severin Hacker SELL 10000 shares 2025-10-20
Severin Hacker SELL 10000 shares 2025-10-06
Natalie Glance SELL 3283 shares 2025-10-01

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Advanced DUOL Option Strategies

Professional options setups generated by AI based on today's DUOL price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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