Duolingo, Inc. - Class A Common Stock (DUOL)

Language-learning app Duolingo (NASDAQ:DUOL) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 41.5% year on year to $252.3 million. Guidance for next quarter’s revenue was optimistic at $259 million at the midpoint, 2.3% above analysts’ estimates. Its GAAP profit of $0.91 per share was 56.4% above analysts’ consensus estimates.

Let's have a look at what is happening on the US markets after the closing bell on Wednesday. Below you can find the top gainers and losers in today's after hours session.

Language-learning app Duolingo (NASDAQ:DUOL) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.

Over the last six months, Duolingo’s shares have sunk to $334.99, producing a disappointing 7.8% loss - a stark contrast to the S&P 500’s 5% gain. This might have investors contemplating their next move.

A number of stocks jumped in the afternoon session after markets rebounded following a sharp sell-off in the previous trading session as a weaker-than-expected U.S. jobs report fueled speculation that the Federal Reserve will cut interest rates in September. The July Nonfarm Payrolls (NFP) report revealed a significant slowdown in the labor market, with the economy adding only 73,000 jobs, well below the anticipated 110,000. Furthermore, data for May and June was revised downwards, indicating 250,000 fewer jobs were created than initially reported. This weaker economic data has led investors to increase their bets on a potential interest rate cut by the Federal Reserve. According to the CME FedWatch Tool, the probability of a rate cut in September has surged to over 80%. Lower interest rates are generally seen as a positive for growth-oriented stocks, as they can boost economic activity and increase the present value of future earnings, fueling broad-based rallies in sectors like technology.

Shares of language-learning app Duolingo (NASDAQ:DUOL) fell 6.9% in the morning session after JMP Securities lowered its price target on the stock, citing concerns about slowing user engagement ahead of the company's second-quarter earnings report. 

A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.

These two companies have strong fundamentals and are in growing industries.

Duolingo stock is down 30%, but bullish signals and unyielding analyst support could mark the start of a strong rebound.

JP Morgan's Smilek expects Duolingo to beat Q2 bookings and raise 2025 guidance, despite trimming DAU forecasts slightly.

Shares of language-learning app Duolingo (NASDAQ:DUOL) fell 4.2% in the afternoon session after the stock continued its downtrend as investors weighed concerns over slowing user growth and the sustainability of its marketing-driven expansion. The language-learning app's stock has been under pressure with no specific company news released today. The negative sentiment appears to be a carryover from recent analyst commentary and bearish articles. Earlier in the month, on July 8, Morgan Stanley lowered its price target on the stock, citing a slowdown in U.S. daily active user growth following the company's "AI-First" initiative.

With a market cap ~$11 billion and its stock quadrupling in value, Duolingo stands out as a rare profitable player in the edtech space.

Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.