Duolingo Targets Cut to $245 and $170 After Shares Hit 52-Week Low
Morgan Stanley cut Duolingo’s price target from $275 to $245 and DA Davidson lowered its target from $205 to $170 after shares hit a 52-week low of $112.41 on Feb 11. Revisions reflect forecasts of Q1 bookings falling about 4% below consensus, with signs of DAU stabilization.
1. Price Target Reductions
Morgan Stanley lowered its Duolingo price target from $275 to $245 with an Overweight rating, citing tactical caution ahead of earnings due to potential shortfalls in initial FY26 bookings. DA Davidson also cut its target from $205 to $170, reflecting expectations that Q1 revenue may undershoot consensus by roughly 4%.
2. Share Performance Trends
On Feb 11, Duolingo shares plunged to a 52-week low of $112.41, representing a 70% decline over the past year. The downturn underscores investor concerns about near-term growth execution and profitability.
3. Q1 Forecast Challenges
Analysts warn that focusing on user growth may pressure Q1 bookings even as January’s month-over-month daily active user gain was the largest on record. Consensus now anticipates Q1 bookings roughly 4% below prior estimates, highlighting short-term revenue risks.