Duolingo (NASDAQ:DUOL) Stock Crosses Above 50-Day Moving Average After Earnings Miss

05 Nov 2026, 00:21 by Amy Steele · The Cerbat Gem

Duolingo, Inc. (NASDAQ:DUOL – Get Free Report)’s stock price crossed above its fifty day moving average during trading on Wednesday after the company announced better than expected quarterly earnings. The stock has a fifty day moving average of $144.95 and traded as high as $175.56. Duolingo shares last traded at $161.27, with a volume of 9,555,639 shares trading hands.

The company reported $0.54 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.03). The business had revenue of $309.01 million for the quarter, compared to analysts’ expectations of $303.20 million. Duolingo had a return on equity of 10.54% and a net margin of 12.33%. The company’s revenue for the quarter was up 13.7% on a year-over-year basis. During the same period last year, the business earned $5.95 earnings per share.

More Duolingo News

Here are the key news stories impacting Duolingo this week:

Positive Sentiment: Q3 revenue of $309.0 million topped estimates of $303.2 million, while daily active users grew 28.5% to 153.1 million. Paid subscribers also increased 13.9%, reinforcing the case that stronger engagement can support future growth. Duolingo Q3 2026 results
Positive Sentiment: Management’s Q4 outlook helped bolster confidence: Duolingo expects bookings to grow 13% and adjusted EBITDA to reach $84 million. The company also cited lower AI video-call costs, which could support broader rollout of the feature. Q4 outlook and Video Call rollout
Neutral Sentiment: Analysts raised several price targets after the results, but many maintained neutral or equal-weight ratings, with targets below the then-current share price. This suggests the rally may have outpaced some analysts’ near-term valuation expectations. Citigroup price-target update
Negative Sentiment: Q3 EPS of $0.54 missed the $0.57 consensus estimate. Commentary also noted that a less aggressive monetization approach is weighing on near-term financial performance, even as user growth accelerates. Analysis of mixed Q3 results
Negative Sentiment: Several law firms publicized a securities class action concerning investors who bought shares between May 2025 and February 2026. The announcements describe allegations, not findings; continued litigation could nevertheless create uncertainty or costs. Class action notice

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on DUOL shares. Wells Fargo & Company raised shares of Duolingo from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $80.00 to $120.00 in a research report on Wednesday. Jefferies Financial Group raised their target price on shares of Duolingo from $95.00 to $125.00 and gave the stock a “hold” rating in a research report on Tuesday, July 14th. Bank of America lowered shares of Duolingo from a “neutral” rating to an “underperform” rating and decreased their target price for the stock from $103.00 to $93.00 in a research report on Tuesday, August 4th. Compass Point began coverage on Duolingo in a report on Tuesday, August 18th. They issued a “buy” rating for the company. Finally, Morgan Stanley raised their price objective on Duolingo from $140.00 to $145.00 and gave the stock an “equal weight” rating in a report on Wednesday. Eight research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $141.56.

View Our Latest Stock Report on Duolingo

Insider Activity at Duolingo

In related news, CEO Luis van Ahn sold 110,046 shares of the company’s stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $151.70, for a total transaction of $16,693,978.20. Following the completion of the transaction, the chief executive officer owned 110,046 shares of the company’s stock, valued at approximately $16,693,978.20. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William Gordon sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $145.67, for a total transaction of $1,456,700.00. Following the transaction, the director directly owned 68,415 shares in the company, valued at approximately $9,966,013.05. This represents a 12.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 260,740 shares of company stock worth $39,049,693. 16.62% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Duolingo

A number of institutional investors have recently added to or reduced their stakes in DUOL. Root Financial Partners LLC raised its holdings in shares of Duolingo by 194.1% in the 1st quarter. Root Financial Partners LLC now owns 250 shares of the company’s stock worth $25,000 after purchasing an additional 165 shares during the period. Heritage Family Offices LLP purchased a new stake in shares of Duolingo during the 3rd quarter worth about $27,000. Provenance Wealth Advisors LLC acquired a new stake in Duolingo during the 3rd quarter worth approximately $30,000. FNY Investment Advisers LLC purchased a new position in Duolingo in the second quarter valued at approximately $34,000. Finally, Versant Capital Management Inc raised its holdings in Duolingo by 73.4% in the third quarter. Versant Capital Management Inc now owns 267 shares of the company’s stock valued at $38,000 after buying an additional 113 shares during the period. Hedge funds and other institutional investors own 91.59% of the company’s stock.

Duolingo Trading Up 26.0%

The stock has a market capitalization of $7.55 billion, a price-to-earnings ratio of 53.22, a PEG ratio of 1.05 and a beta of 1.08. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.72 and a quick ratio of 2.72. The business’s 50-day simple moving average is $144.95 and its two-hundred day simple moving average is $124.13.

Duolingo Company Profile

(Get Free Report)

Duolingo, Inc develops technology-based learning products designed to make education accessible and engaging. Its flagship Duolingo mobile and web platform offers gamified courses in languages including Spanish, English, French, German and Japanese, among others. Lessons incorporate interactive exercises, personalized practice and achievement-based features intended to support regular learning.

The company also operates the Duolingo English Test, an online English-proficiency assessment that can be taken remotely and is accepted by educational institutions and other organizations.