Duolingo Will Be Back On Track: Buy The Stock

Fountainhead2.34K FollowersFollow5ShareSavePlay(14min)Comment(1)SummaryDuolingo has learnt from its mistakes and is effecting a turnaround by focusing on improving user experience.It is a strong cash rich company with an incredibly low valuation of 4.5x sales and 14x Operating Cash Flow.It is the market leader by far in language learning without serious competition.At worst, AI will be a minor irritant and not a serious headwind. stockcam/iStock Unreleased via Getty Images Losing ground in 2025 In February 2026, Duolingo (DUOL) dropped 20% post Q4-2025 earnings after revenue guidance tumbled to an astonishingly low growth of just 15-17% for the full year 2026. A huge drop from the 39% growth in 2025, which itself saw sequentialThis article was written byFountainhead2.34K FollowersFollowFinancial Analyst and Portfolio Manager for over 3 decades, with a 5 Star TipRanks rating in the top 3%.I love to find great, undervalued, best-in-class companies using the same fundamental analysis and strategies used by Warren Buffett and Peter Lynch.Analyst’s Disclosure: I/we have a beneficial long position in the shares of DUOL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.