Why the Duolingo share price just crashed 21%
Duolingo (NASDAQ:DUOL) saw its share price crash 21% in extended trading last night (5 November). The Q3 numbers were strong, but that’s not the issue.
The problem is artificial intelligence (AI). Management keeps trying to present this as an opportunity, but the stock market – literally – isn’t buying it, and nor am I.
Duolingo’s revenues were up 41% and earnings per share were up 682%, though this was largely due to a one-off tax gain. And there’s nothing wrong with either of those numbers.
Bookings for Q4 were a little bit light and the number of daily active users was slightly below expectations. But neither of those justifies a 21% decline in the share price.
The big…
