Buy Recommendation: April 23, 2026 [PREMIUM]

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Duolingo, Inc. (NASDAQ: DUOL)

Action: Buy (2nd Recommendation)

Date: April 23, 2026

Buy Price: $100.29

Original Recommendation (March 20, 2026): READ

Update

Since our initial recommendation in late March, DUOL has traded in a tight range and now sits at $100.29 as of April 23, 2026. The stock remains sharply depressed from its 2025 highs as AI disruption fears continue to weigh heavily on investor sentiment. The market appears convinced that free or low-cost AI tutors and translation tools will erode Duolingo’s value proposition and derail its growth.

We strongly disagree. AI is not a headwind for Duolingo — it is rapidly becoming one of its most powerful tailwinds. The company has evolved into a sophisticated A/B testing machine with a proprietary data moat built from over one billion learning exercises completed every day. This massive, real-time dataset enables hyper-personalized learning experiences tailored to each individual, constantly refining content, difficulty, and engagement in ways that are extremely difficult for competitors to replicate.

The notion that AI can simply generate “good enough” apps capable of disrupting this business is unrealistic. The difference between a good learning app and a truly great one — one that drives daily habit formation, high retention, and measurable learning outcomes — is enormous and takes years of disciplined iteration to achieve. Duolingo’s gamified design, behavioral flywheel, and data advantage create high switching costs that protect its leadership position, even as AI accelerates content creation and personalization (clearly demonstrated by the rapid success of the chess course).

Management’s deliberate focus on user growth over near-term monetization, while pressuring short-term results, remains the correct long-term strategy to scale toward 100 million DAUs and cement its position as the dominant superhuman AI tutor platform. The $400 million share repurchase program further underscores management’s conviction at current levels.

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Bottom Line

We are issuing a second Buy recommendation for Duolingo, Inc. (NASDAQ: DUOL) at $100.29 as a core long-term holding in the Dream Picks portfolio. Persistent AI fears have created another compelling entry point for a high-quality compounder with durable advantages and significant upside from AI-powered personalization and content velocity.

While near-term sentiment and monetization trade-offs may keep the stock volatile, the long-term investment thesis is stronger than ever. We continue to hold our position and would view any further weakness driven by these concerns as an opportunity to add. Duolingo is well-positioned to thrive as AI transforms education — not be disrupted by it.

This article was written by The Wall Street Dream. AI tools were used to assist with editing and polishing, but all ideas and opinions are entirely our own.

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