Duolingo (DUOL) - 58.80% Below 52-Week High: Buy or Wait?

Stock Details

Duolingo, Inc. (DUOL), a prominent company in the technology sector within the software - application industry, is based in United States and primarily trades on the NMS.Currently, the stock is trading at $146.27. Over the past 52 weeks, it has ranged between $87.89 and $355.00. This places the current price at 41.2% of its 52-week high and 66.4% above its 52-week low. Recent trading volume was recorded at 334,577. The 14-day Relative Strength Index (RSI) stands at 59.89, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $129.89 by 12.61%. Similarly, it is above its 200-day moving average of $134.65 by 8.63%. The MACD histogram is 0.87, indicating bullish momentum (MACD Line: 3.75, Signal Line: 2.88). There is currently 1 active alert set for DUOL by users.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

17.28

Near market average

Forward P/E

19.15

Earnings expected to decline

Price to Book

4.87

EV/EBITDA

31.56

EPS (TTM)

$8.51

Price to Sales

5.98

Beta

0.88

Less volatile than market

Q:How is DUOL valued relative to its earnings and growth?

Duolingo, Inc. trades at a P/E ratio of 17.28, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 19.15 is higher than the current P/E, indicating analysts expect earnings to decline over the next year.

Q:What is DUOL's risk profile compared to the market?

With a beta of 0.88, Duolingo, Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.87 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

35.88%

Operating Margin

11.68%

EBITDA

$179.03M

Return on Equity

34.42%

Return on Assets

5.64%

Revenue Growth (YoY)

18.30%

Earnings Growth (YoY)

-27.50%

Q:How profitable and efficient is DUOL's business model?

Duolingo, Inc. achieves a profit margin of 35.88%, meaning it retains $35.88 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 11.68% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 34.42% and ROA at 5.64%, the company generates strong returns on invested capital.

Q:What are DUOL's recent growth trends?

Duolingo, Inc.'s revenue grew by 18.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 27.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against Software - Application industry averages for proper context.

Company Size & Market

Market Cap

$6.9B

Revenue (TTM)

$1.15B

Revenue/Share (TTM)

$24.65

Shares Outstanding

40.24M

Book Value/Share

$30.17

Asset Type

EQUITY

Q:What is DUOL's market capitalization and position?

Duolingo, Inc. has a market capitalization of $6.9B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 40.24M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Software - Application industry, it competes with other firms in this sector.

Q:How does DUOL's price compare to its book value?

Duolingo, Inc.'s book value per share is $30.17, while the current stock price is $146.27, resulting in a price-to-book (P/B) ratio of 4.85. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$126.46

13.54% downside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for DUOL?

23 analysts cover DUOL with 22% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $126.46 implies -13.5% downside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on DUOL?

Current analyst recommendations:2 Strong Buy, 3 Buy, 17 Hold, 1 Sell, 0The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Aug 21, 2026, 02:18 AM

Technical Indicators

RSI (14-day)

59.89

Neutral

50-Day Moving Average

$129.89

12.61% above MA-50

200-Day Moving Average

$134.65

8.63% above MA-200

MACD Line

3.75

MACD Signal

2.88

MACD Histogram

0.87

Bullish

Q:What does DUOL's RSI value tell investors?

The RSI (Relative Strength Index) for DUOL is currently 59.89, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

Q:How should traders interpret DUOL's MACD and moving average crossovers?

MACD analysis shows the MACD line at 3.75 above the signal line at 2.88, with histogram at 0.87. This bullish crossover suggests upward momentum is building. The 50-day MA ($129.89) is below the 200-day MA ($134.65), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

Indicators last updated: Aug 21, 2026, 01:14 AM

Condition	Threshold	Created At
Golden Cross	N/A	Jan 23, 2026, 02:08 AM

Condition

Threshold

Created At

Golden Cross

N/A

Jan 23, 2026, 02:08 AM

Duolingo, Inc. (DUOL) Stock