Bear of the Day: Duolingo (DUOL)

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AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Bear of the Day: Duolingo (DUOL) April 13, 2026 — 05:00 am EDT Written by Derek Lewis for Zacks-> Duolingo DUOL provides a mobile language learning platform. The stock has fallen into a Zacks Rank #5 (Strong Sell) on the back of falling EPS revisions, as shown below.Image Source: Zacks Investment ResearchDuolingo Shares FallDuolingo shares have plunged from their steep 2025 highs, down more than 80%. The adverse price action has remained throughout the entirety of 2026 so far, losing roughly 46% and seeing continued pressure following the release of its latest set of quarterly results.Image Source: Zacks Investment ResearchThe company is in a somewhat transitional phase, stating in its latest quarterly release that it’s intentionally prioritizing user growth and its free learners' experience to gain more exposure through word of mouth. The result is expected to impact its near-term financial growth, helping explain the poor share reaction post-earnings we saw in the above-mentioned release.As shown below, the growth picture for its current FY26 reflects a significant falloff relative to recent years, though things do look to rebound modestly in FY27, particularly so on the earnings front.Image Source: Zacks Investment ResearchDecelerating growth expectations in former high-flyers like DUOL typically lead to highly volatile share-price reactions as investors price in a new picture relative to what was originally being delivered.Bottom LineNegative earnings estimate revisions stemming from a growth cooldown paint a challenging picture for the company’s shares in the near term.Duolingo DUOL is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
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