Duolingo, Inc.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Las Vegas Sands Corp (Symbol: LVS), where a total of 35,829 contracts have traded so far, representing approximately 3.6 million underlying shares. That amounts to about 75.3% of LVS's average daily trading volume over the past month of 4.8 million shares. Particularly high volume was seen for the $50 strike call option expiring September 18, 2026, with 15,481 contracts trading so far today, representing approximately 1.5 million underlying shares of LVS. Below is a chart showing LVS's trailing twelve month trading history, with the $50 strike highlighted in orange:
NRG Energy Inc (Symbol: NRG) saw options trading volume of 15,810 contracts, representing approximately 1.6 million underlying shares or approximately 63.9% of NRG's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $190 strike call option expiring September 18, 2026, with 5,036 contracts trading so far today, representing approximately 503,600 underlying shares of NRG. Below is a chart showing NRG's trailing twelve month trading history, with the $190 strike highlighted in orange:
And Duolingo Inc (Symbol: DUOL) options are showing a volume of 6,362 contracts thus far today. That number of contracts represents approximately 636,200 underlying shares, working out to a sizeable 60.6% of DUOL's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $150 strike call option expiring July 31, 2026, with 853 contracts trading so far today, representing approximately 85,300 underlying shares of DUOL. Below is a chart showing DUOL's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for LVS options, NRG options, or DUOL options, visit StockOptionsChannel.com.
Further LVS Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: LVS, NRG, DUOL

Key Points
Duolingo investors are selling the stock ahead of the company's release of its second-quarter results on Aug. 5.
The company is investing in AI content and is aiming for 100 million daily active users in 2028.
Shares of the language learning company Duolingo (NASDAQ: DUOL) fell by 9.8% this week, according to data provided by S&P Global Market Intelligence, as investors grow increasingly concerned about AI disruption.
Duolingo will report its second-quarter 2026 results early next month, and shareholders could be paring back their holdings now, in anticipation of a rough quarter.
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AI has Duolingo investors worried
Duolingo's share price has nosedived over the past year, falling 66% as investors have become increasingly concerned that AI will disrupt Duolingo's business model.
Shareholders may have reacted this week to news that a yet-to-be-released OpenAI ChatGPT model went rogue and hacked a website. OpenAI was testing the model for its cybersecurity capabilities, and it broke free of its contained sandbox environment in search of the test answers.
Duolingo isn't a cybersecurity company, but its shareholders are already concerned that AI companies could disrupt the company's language learning and education app. A highly capable ChatGPT doesn't instill confidence that Duolingo can fend off AI competition.
Shareholders may be bracing for Duolingo's quarterly results
Duolingo is investing more in AI features to stay relevant, but it's coming at a cost. Management said gross margins will fall to 69% by the end of this year as AI-driven costs rise.
Duolingo has set a goal of 100 million daily active users in 2028 and is willing to sacrifice some higher margins to get there.
Investors will find out more about how well the company is achieving its goals when Duolingo reports its second-quarter results on Aug. 5. Still, it's clear from the share price declines this week that Duolingo has a lot to prove before regaining investor confidence.
Should you buy stock in Duolingo right now?
Before you buy stock in Duolingo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Duolingo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
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*Stock Advisor returns as of July 24, 2026.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Duolingo Stock Plunged 10% This Week

Key Points
Duolingo's stock has plummeted by more than 75% from its peak on concerns that AI could disrupt its digital language education business.
The company has proven it can use AI to improve its platform, and it recently outlined a plan to nearly double its user base by 2028.
Duolingo stock is trading at a compelling valuation right now, potentially paving the way for blistering returns in both the short and long terms.
Duolingo (NASDAQ: DUOL) operates the world's largest digital language education platform. Its stock surged during 2024 and 2025 to hit a record high of about $540 in May of last year, but it has since plummeted by more than 75% amid concerns that artificial intelligence-powered translation tools could reduce demand for language lessons.
Plus, Duolingo's executive team recently made a business decision to prioritize user growth over the next couple of years, at the expense of monetization. As a result, Wall Street is pricing in less revenue and earnings growth, which has further contributed to the stock's decline.
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However, I think the sell-off is overdone. Duolingo has already proven it can use AI to improve its platform, and focusing on user growth in the near term could lead to significantly higher revenue over the long term. The stock is now incredibly cheap, so here's why I predict it will double by the time 2027 rolls around.
AI could be a tailwind, not a risk, for Duolingo
Duolingo's mobile-first approach and highly interactive lessons are the secrets to its success. Around 56.5 million people used its app every single day during the first quarter, and while most of them were free users whom the company monetized through advertising, 12.5 million users were paying for subscriptions to unlock extra features.
A growing number of those features are powered by AI. Users who pay for a Super Duolingo or Duolingo Max plan can access Video Call, which features a digital avatar that helps them practice their foreign language speaking skills. During the first quarter, the number of spoken words per user who engaged with this tool more than doubled compared to the year-ago period, so it's clearly proving to be popular.
Because of the success of Video Call, Duolingo plans to introduce more speaking-based lessons for free users to increase the platform's popularity. This is one of the ways the company is sacrificing monetization in the short run: Making speaking-based tools more widely available will diminish the value of paid features like Video Call, but it could significantly increase the platform's overall user base in the long run.
A growing user base will be a net positive over the long term
Management's decision to sacrifice monetization in favor of faster user growth is already having a negative impact on Duolingo's financial performance. Revenue increased by 27% year over year during the first quarter, which was a solid result at face value, but a deceleration from its 38% growth in the same quarter of 2025.
That might sound like bad news, but management believes its strategic shift could lead to Duolingo's daily active user base nearly doubling to 100 million by 2028. Theoretically, a larger user base will make the platform harder to disrupt, so it will be more defensible against new competitors. Moreover, when the company decides to focus on monetization again in the future, it will have more overall users whom it can attempt to convert into paying subscribers.
If Duolingo converts free users into subscribers in 2028 at the same rate as it did in 2025, then we can assume its paying user base and annualized revenue will also eventually double from current levels. At that point, investors who sold Duolingo stock during its recent decline might wish they had held on.
Why Duolingo stock could double in the next six months
Since Duolingo's management team is focused on a two-year plan, I don't expect the company's financial results to shoot the lights out in the near term. My prediction that the stock could double by 2027 is based mostly on its valuation -- in other words, I think the stock overshot to the downside, and is poised to recover some ground now that the dust has settled.
Duolingo stock is trading at a price-to-sales (P/S) ratio of just 5.7 as I write this, which is a significant discount to its average of 15.5 since going public in 2021. Even if the stock doubled from here, it would still have a below-average P/S ratio of 11.4.
Plus, based on Duolingo's trailing-12-month earnings of $8.74 per share, its stock is trading at a P/E ratio of 15.3, which is significantly cheaper than the broader market. The stock would have to more than double just to match the P/E of the Nasdaq-100 index, which is currently 35.2.
In summary, I think the sell-off in Duolingo stock is way overdone, and as long as the company doesn't dramatically miss Wall Street's expectations in its next couple of quarters, investors who buy it at around the current level could enjoy solid short-term and long-term rewards.
Should you buy stock in Duolingo right now?
Before you buy stock in Duolingo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Duolingo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,679!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,805!*
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*Stock Advisor returns as of July 11, 2026.
Anthony Di Pizio has positions in Duolingo. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: This Magnificent Growth Stock Is Going to Double by 2027, and Here's the Math That Shows How

Key Points
Adobe continues to gain market share, with AI serving as a major catalyst instead of a headwind.
Duolingo's valuation has plummeted, even as the company continues to attract new users and deliver impressive revenue growth.
Broadcom's AI semiconductor revenue is surging, and it's lifting the entire business.
The stock market doesn't always get it right. Periodically, investors can find inefficiencies that can yield higher returns than the S&P 500 average. Sometimes the market notices underpriced assets right away, while in other cases it can take several months or even years. Investors who are looking for buy-the-dip opportunities in the tech sector may want to consider these three picks.
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1. Adobe
Adobe (NASDAQ: ADBE) is one of the many software stocks that took a beating when Claude's artificial intelligence features fueled the plunge in the software as a service (SaaS) sector. Investors feared AI would replace many software businesses or stunt future growth, but that hasn't been the case for many companies, including Adobe.
A 13% year-over-year revenue growth in Adobe's fiscal 2026 second quarter (ended May 29) helped set the record straight. Furthermore, Adobe's AI-first annual recurring revenue tripled year over year, exceeding $500 million. That part of the business is still relatively small, but it demonstrates that artificial intelligence is helping Adobe gain market share.
That's an important distinction, since the majority of Adobe's bearish sentiment has centered on the possibility that AI could hurt the business. The 37% year-to-date drop (as of July 8) now looks like a compelling buying opportunity, and some investors are already accumulating shares at this level.
The valuation isn't even a problem anymore thanks to the dip. It trades at a forward price-to-earnings (P/E) ratio of 9. Last year, Adobe's forward P/E ratio hovered in the high teens and low 20s.
2. Duolingo
Duolingo (NASDAQ: DUOL) has lost almost 30% of its value this year, for much the same reasons as Adobe. Investors worried that consumers would use AI models to learn new languages instead of sticking with their Duolingo subscription plans.
Just like Adobe, Duolingo posted solid results that suggest AI is helping, not hurting, the business. Bearish investors wrongly interpreted a tailwind as a headwind, and that's part of the reason shares are up by more than 40% from their 2026 lows in April.
Duolingo trades at a forward P/E of less than 19, so it's not as cheap as Adobe. However, the edtech company commanded a forward P/E ratio of more than 100 less than a year ago, so it is a meaningful improvement.
The company is also growing faster than Adobe. First-quarter revenue rose 27% year-over-year was a solid result that assuaged AI concerns. Duolingo even highlighted how AI has helped the company strengthen its educational courses and provide more lessons.
This capability will become more valuable as Duolingo continues to expand into other subjects, rather than relying exclusively on people who want to learn new languages.
3. Broadcom
Broadcom (NASDAQ: AVGO) is the leading provider of ASIC (application-specific integrated circuit) chips. This technology lets customers tailor AI chips to their specific needs, instead of relying exclusively on Nvidia's (NASDAQ: NVDA) all-purpose graphics processing units (GPUs).
While Broadcom isn't going to dethrone Nvidia anytime soon, a more than 21% drop from its all-time high is the type of pullback the stock needed to become more compelling. Fundamentals remain strong, based on 48% year-over-year revenue growth in Broadcom's fiscal 2026 second quarter. AI-related revenue surged 143% year over year, accounting for almost half of total revenue.
As AI semiconductors make up a larger share of Broadcom's total revenue, overall sales growth should continue to accelerate. Broadcom Chief Executive Officer Hock Tan told investors to expect AI semiconductor revenue to more than triple year over year when it reports earnings for its fiscal 2026 third quarter ending Aug. 2.
The recent news of Apple (NASDAQ: AAPL) expanding its partnership with Broadcom supports Tan's optimism about future results. This multi-year deal is valued at more than $30 billion and offers meaningful revenue gains for the years ahead. Broadcom's recent price movement suggests growth is cooling off, but that couldn't be any further from the truth. This mismatch presents a buying opportunity for savvy investors.
Should you buy stock in Adobe right now?
Before you buy stock in Adobe, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Adobe wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $407,651!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,252,823!*
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*Stock Advisor returns as of July 10, 2026.
Marc Guberti has positions in Apple and Broadcom. The Motley Fool has positions in and recommends Adobe, Apple, Broadcom, Duolingo, and Nvidia. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Tech Stocks Poised for Comebacks

Key Points
Duolingo dominates the digital education space with a highly profitable, gamified language learning platform.
Zeta Global leverages proprietary data and artificial intelligence to power marketing campaigns for large enterprise clients.
Which software growth stock is the smarter addition to your portfolio right now?
Investors choosing between Duolingo (NASDAQ:DUOL) and Zeta Global (NYSE:ZETA) must weigh high-growth education technology against AI-powered marketing solutions. Both companies are navigating a rapidly evolving software landscape in 2026.
Duolingo uses gamification to maintain user engagement in the language learning market, while Zeta Global focuses on enterprise-level data analytics for digital marketing. They represent two different paths within the software sector, offering investors distinct ways to gain exposure to consumer-facing and business-to-business technology trends.
The case for Duolingo
Duolingo provides language education through its flagship mobile app, which uses gamification to keep users returning. The company generates most of its revenue through subscriptions and advertising on its platform. Customer concentration like this adds a layer of risk to the business, as Apple and Alphabet together accounted for roughly 82% of total revenue in 2025.
In FY 2025, revenue reached $1 billion, which represents a growth rate of approximately 38.7% compared to the prior year. The company also reported net income of nearly $414.1 million for the same period. This resulted in a net margin of close to 39.9%, which helps investors assess how efficiently a company converts sales into profit.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.1x, which measures total debt against shareholder equity. The current ratio is approximately 2.6x, indicating the company has sufficient assets to cover its short-term debts. Free cash flow for the year was roughly $369.7 million, though stock-based compensation represented roughly 35.4% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Zeta Global
Zeta Global provides an AI-powered marketing cloud that helps large enterprises acquire and retain customers through digital channels. The company recently entered a strategic partnership with Palantir Technologies to enhance its infrastructure for enterprise artificial intelligence. Since the top 10 customers account for more than one-third of total revenue, customer concentration like this adds a layer of risk to the business.
For FY 2025, the company reported revenue of close to $1.3 billion, representing growth of approximately 29.7% year over year. Despite this growth, the business reported a net loss of roughly $31.5 million. This resulted in a net margin of about -2.4%, showing that the company has not yet reached full-year profitability on a net basis.
On its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.2x. The company maintains a current ratio of approximately 1.6x, providing a healthy cushion for short-term liabilities. Free cash flow was nearly $185.1 million, but stock-based compensation represented roughly 89.4% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement for tech stocks like this.
Risk profile comparison
Duolingo faces significant revenue concentration risks because it is highly dependent on the app stores run by Apple and Alphabet. The company also competes in a crowded online learning market where new generative artificial intelligence products could disrupt its pricing power. Additionally, as of April 2026, the company is under investigation by law firms concerning potential federal securities law violations.
Zeta Global is heavily reliant on a small number of large clients, making the loss of any single major relationship a significant threat to financial results. The business must also navigate evolving data privacy laws like GDPR that could limit its ability to collect consumer data. Furthermore, integrating acquisitions and adapting to emerging AI-specific regulations pose ongoing challenges to its operational efficiency.
Valuation comparison
Zeta Global trades at a significantly lower multiple than Duolingo, suggesting a more conservative valuation for the AI marketing company relative to future earnings estimates.
Forward P/E
42.9x
19.9x
36.4x
P/S ratio
5.5x
3.6x
N/A
Sector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Duolingo and Zeta offer very different products, but they appear to be at the same point in their growth journeys. Both sport market caps around $5 billion, both are applying artificial intelligence to power their businesses, and both face customer concentration risks. Duolingo shines in terms of its profitability, but Zeta’s product may make it the more compelling pick in this match-up.
Digital marketing is a big business, and if Zeta’s AI-powered product can differentiate itself in a crowded market, it could prove to be a runaway winner. Its partnership with tech giant Palantir is certainly a step in the right direction. Duolingo was a breakout star and offers a unique product, but online language learning may have more limited adoption, especially as more users become comfortable conversing with AI assistants.
Investing in tech stocks, particularly those that are deep in growth mode, can pay off handsomely for investors, but conservative investors are best served keeping these kinds of investments to smaller allocations within their portfolios, as the soaring highs can be quickly replaced by devastating lows.
Should you buy stock in Duolingo right now?
Before you buy stock in Duolingo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Duolingo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $385,055!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,228,089!*
Now, it’s worth noting Stock Advisor’s total average return is 902% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 1, 2026.
Sarah Sidlow has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Duolingo, and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Duolingo vs. Zeta Global: Which Technology Stock Is a Better Buy in 2026?

Key Points
Duolingo has been expanding into other subjects to offer a broader learning experience.
The company has used AI to create more courses and enhance its subscription plans.
It's aiming for 100 million daily active users by 2028, and to reignite its revenue growth.
It's been tough for long-term investors to hold Duolingo (NASDAQ: DUOL). The stock is down more than 70% over the past year, and while it was overvalued at over $400 per share, the current price is at bargain-basement levels, and some investors are finally noticing.
The stock has rallied more than 20% over the past month, and there are several reasons for Duolingo investors to feel optimistic that this is just the beginning.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Duolingo isn't just for learning new languages
Duolingo's original specialty was gamifying the language-learning experience. However, it is expanding into teaching other subjects, including chess, its fastest-growing subject.
Chess is a notable addition since it expands Duolingo's offerings beyond academic areas. The edtech company introduced math and music a few years ago and continues to expand its inventory. Duolingo is turning into an app that helps people master high-demand skills, not just new languages.
Its recent artificial intelligence (AI) investments also play a role here. Duolingo told investors in its Q1 shareholder letter that AI has "fundamentally changed how quickly we can create content." The company was able to publish 20,500 course units in Q1, compared to an average of 7,100 per quarter in 2025 and 1,800 per quarter in 2024.
Duolingo explained that this dramatic scaling helped it improve its popular Chinese, Japanese, and Korean courses. However, this same increase in content production makes it substantially easier for Duolingo to create new courses on high-demand skills that attract more users.
Net income is still growing
Almost tripling quarterly course unit production in a single year gives customers more options. That helps with revenue, but surprisingly, Duolingo's net income has marched higher as well. It truly demonstrates that Duolingo's AI efforts are cost-efficient, which makes the growth sustainable.
For instance, Duolingo delivered 24% year-over-year net income growth in Q1. Revenue was up by 27%, so there was a slight contraction in the net profit margin. Duolingo still walked away from the quarter with a double-digit profit margin, which has become the norm.
All of this financial growth is fueled by steady user acquisition. Duolingo's daily active users and paid subscribers were both up by 21% year over year. With 56.5 million and 12.5 million people, respectively, in those segments, Duolingo can still gain more market share. A side focus on hot, broader subjects like chess can expand Duolingo's footprint and keep users more engaged.
Intentional revenue slowdown is for long-term gains
Although Duolingo's numbers were good, they were a downgrade from what investors have come to expect. Last year, Duolingo was exceeding 40% year-over-year revenue growth. A drop to 27% would explain the decline if Duolingo traded at over $400 per share then. However, Duolingo released Q1 results in early May, when almost all of the damage was already done.
Duolingo is aiming to become a company that will be around for 100 years and change how the world learns everything. This long-term vision comes with a medium-term goal of reaching 100 million daily active users in 2028.
The company could make more revenue by pushing its subscriptions or establishing a hard paywall, but Duolingo said its scale wouldn't be possible with a paywall model. Getting to 100 million daily active users with a freemium model will give Duolingo more options and financial growth in the future when it maximizes its average revenue per user.
In the meantime, Duolingo continues to improve its subscriptions so more people feel inclined to become paying customers. The company cited its subscription-only Video Call feature, which has more than doubled the average number of words spoken per user who takes advantage of it.
Duolingo anticipates 17.1% year-over-year revenue growth in Q2 and 16.1% in full-year 2026. The guidance figures imply deceleration and aren't glamorous for a growth stock, but Duolingo's correction is long overdue. Its efforts to attract 100 million daily active users in 2028 should pay off tremendously and give the company more opportunities to reignite revenue growth when the time calls for it.
Should you buy stock in Duolingo right now?
Before you buy stock in Duolingo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Duolingo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $382,359!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,201,390!*
Now, it’s worth noting Stock Advisor’s total average return is 883% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 26, 2026.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Duolingo Rally Is Finally Starting

Key Points
Adobe remains a dominant force in creative software, generating nearly $9.9 billion in annual free cash flow.
Duolingo is expanding rapidly beyond languages into math and music with a highly profitable freemium business model.
Which of these software innovators is the better addition to your investment portfolio in 2026?
Choosing between Adobe (NASDAQ:ADBE) and Duolingo (NASDAQ:DUOL) requires balancing established market dominance against high-octane growth. Both companies lead their respective software niches, but which is the better buy for your portfolio?
Adobe is the gold standard for creative professionals, offering a deep suite of essential tools. Duolingo has revolutionized digital learning through gamification, expanding from languages into broader education. This comparison examines how Adobe's massive scale and cash generation stack up against Duolingo's rapid expansion and high user engagement.
The case for Adobe
Adobe provides digital tools for creators and enterprises through its Creative Cloud, Document Cloud, and Experience Cloud platforms. The company serves a diverse global base including individual students, creative professionals, and massive government entities. Leadership remains in flux, as the firm currently lacks a permanent CEO and recently announced the departure of CFO Dan Durn.
In its 2025 fiscal year (FY), the company generated $23.8 billion in revenue, representing growth of 10.5% over the $21.5 billion recorded in the previous year. This resulted in net income of $7.1 billion, which is a significant increase from the $5.6 billion earned in FY 2024. This growth reflects the steady global demand for standardized digital experience software, a strength of this tech stock.
As of its November 2025 balance sheet, the debt-to-equity ratio is 0.6x. This ratio shows how much debt a company uses to finance its assets relative to the value of shareholder equity. The current ratio, which compares short-term assets to short-term liabilities, is 1.0x, while free cash flow reached $9.9 billion.
The case for Duolingo
Duolingo operates a popular learning platform that uses gamification to teach languages, math, music, and chess to over 50 million daily users. The business relies on a freemium model where 9% of monthly active users pay for premium features. It faces high customer concentration, as 62% of revenue flows through the Apple App Store and 20% comes from the Alphabet Google Play Store.
For FY 2025, revenue reached $1.0 billion, a significant increase of 38.7% compared to the $748.0 million reported in FY 2024. The company reported net income of $414.1 million, producing a net margin of 39.9%. These figures highlight the company's ability to scale its user base effectively while increasing the total amount of profit kept from each dollar of sales.
As of its December 2025 balance sheet, the company maintains a debt-to-equity ratio of 0.1x and a current ratio of 2.6x. Free cash flow for the year was $369.7 million. Note that stock-based compensation represented 35.4% of operating cash flow, which inflates reported cash generation since this is a non-cash expense added back in the cash flow statement.
Risk profile comparison
Adobe faces scrutiny regarding its subscription practices, recently reaching a $150 million settlement with the Department of Justice over claims of difficult cancellation processes. The current lack of a permanent CEO and the loss of its CFO create operational uncertainty and potential strategic instability for investors. Furthermore, the rise of generative AI requires Adobe to innovate constantly to protect its proprietary customer data and defend its market share.
Duolingo is heavily dependent on platform owners for its distribution, meaning any changes to store fee structures could materially harm the business. The company also faces investigations into potential violations of federal securities laws and must navigate complex global data privacy regulations. Finally, Duolingo must compete with other AI-driven educational tools in a market where users can switch products with very low costs.
Valuation comparison
Adobe appears significantly cheaper than Duolingo because it trades at a much lower multiple of its future earnings estimates despite its current leadership uncertainty.
Forward P/E
8.0x
44.3x
37.6x
P/S ratio
3.3x
5.6x
Sector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Adobe and Duolingo are compelling stocks to buy in 2026 since both have seen substantial share price declines. The latter hit a 52-week low of $87.89 in April while the former’s low of $190.12 occurred more recently on June 18.
I own both stocks, but if I were to pick one this year, it would be Adobe. The decision isn’t to say Duolingo is bad; its massive growth and strong financials make it an attractive investment.
Duolingo shares fell due to investor concerns that AI would take business away. Instead, AI looks like it is fueling more growth. The company introduced artificial intelligence chatbots that users can practice language skills with, and this helped grow daily active users by 21% year over year to 56.5 million in the first quarter.
Despite Duolingo’s ongoing strong performance, Adobe is my pick for several reasons. The departure of its CEO and CFO inject uncertainty, causing shares to fall, but now Adobe’s stock valuation is outstanding. Its forward P/E of eight is far below the benchmark for the tech sector.
In addition, Adobe is a leader in its industry, and remains so as demonstrated by results in its fiscal Q2 ended May 29. The company achieved record revenue of $6.6 billion, a strong 13% year-over-year increase. Its combination of market leadership, growing sales, and appealing valuation make Adobe the stock to buy right now.
Should you buy stock in Adobe right now?
Before you buy stock in Adobe, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Adobe wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $393,037!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,627!*
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Robert Izquierdo has positions in Adobe, Alphabet, Apple, and Duolingo. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, and Duolingo. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Adobe vs. Duolingo: Which Technology Stock Is a Better Buy in 2026?

Key Points
The stocks on this list trade at discounts to the S&P 500 average.
They have been struggling, and their shares are down more than 48% in just the past year.
They are all trading around multi-year lows.
Investing in stocks that have been doing poorly can seem risky. But if those stocks have strong underlying fundamentals, they can turn out to be attractive contrarian investments to buy and hold. Think of it as buying in a bear market. You might be scared to do so as you see stock prices go down, and the temptation is to think they'll keep going down. However, buying at extremely low prices can set you up for significant gains in the future -- as long as the business is in good shape.
Three stocks I think could be enticing contrarian buys today are Adobe (NASDAQ: ADBE), Chewy (NYSE: CHWY), and Duolingo (NASDAQ: DUOL). Their share prices haven't been this low in years, and while there is some risk with them these days, here's why they could prove to be excellent buys for the long haul.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Adobe
Adobe's stock has been struggling mightily, and it's down 66% over the past five years and 48% in just the past 12 months. It's trading at levels it hasn't been at since 2018. Investors are concerned about the company's long-term future. This is, after all, a company whose business centers on creating images, and with chatbots able to do so with ease, there are serious question marks about Adobe's ability to compete in the long run.
However, Adobe has been incorporating artificial intelligence (AI) into its products as well, making it easy for users to create images and videos with AI. And with Adobe's software, you can also make more precise edits and changes. As anyone who's used chatbots to make images knows, there's not always much consistency from one image to another, and users can quickly burn through credits trying to fine-tune the process. Creating an image with an AI chatbot may be easy, but creating precisely what you want is a whole other story.
There still is a case for using Adobe's software, particularly for professionals. Hence, the company's results remain strong. In its most recent quarter, which ended on May 29, Adobe's revenue reached a record $6.6 billion, up 13% year over year. For the current fiscal year (which ends in November), the company anticipates at least $26.5 billion in revenue, up from $23.8 billion in the previous year.
Adobe's financials remain strong, and the numbers look good. While investors may be tempted to dump the stock due to AI, I believe there may be a significant overreaction here. Trading at just eight times its estimated future earnings (based on analyst expectations), Adobe's stock is incredibly cheap and even provides investors with an attractive margin of safety. It might be a good, calculated risk worth taking.
Chewy
Another stock that's down big is Chewy. In five years, it has plummeted 77%, and in 12 months, it's down 58%. While that seems horrific, the reality is that its valuation spiked far too high in 2021, and it was grossly overvalued. The decline is more representative of an overvalued stock coming back to reality than of something seriously wrong with the business. It's trading around a two-year low right now.
Chewy provides pet owners with a convenient online option for purchasing pet products and supplies, offering about 190,000 products and service offerings. The site can be an all-in-one option for consumers needing pet products, and even prescriptions and medications. It's a niche that has proven to be successful for the business.
Chewy reported earnings earlier this month, and net sales of $3.4 billion for the period ending May 3 rose by nearly 8% year over year. Net income of just under $95 million was also up by about 52%. With around 21.5 million active customers and Chewy continuing to add to the list, the business seems to be in solid shape.
The problem with Chewy's stock before was its high valuation. But now, with the stock trading at a forward price-to-earnings (P/E) multiple of 12, it can be a great buy right now.
Duolingo
Duolingo's 10% loss over the past 5 years doesn't look too bad, but when you zero in on the past 12 months, you can see the stock has nosedived by more than 70%. Although the stock has been rising recently, outside the past few months, the last time it traded at these levels was back in 2023.
The tech company has been using AI more and undergoing a transformation, prioritizing user growth and enhancing its free tier rather than strictly pursuing revenue and profit growth. It's a bold move, but one that may prove to pay off.
Thus far, the numbers continue to look strong for Duolingo. Daily active users rose by 21% during the first quarter of 2026 to 56.5 million, and revenue rose by 27% to $292 million. Its profit margin did fall slightly from 15.2% to 14.9%, but overall, its financials still look great.
Duolingo is technically the most expensive stock on this list with a forward P/E of just under 19, but that's still below the S&P 500 average of 22. If you're looking for a quality long-term buy, Duolingo is another great option to consider.
Should you buy stock in Adobe right now?
Before you buy stock in Adobe, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Adobe wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,305!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,293,148!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Chewy, and Duolingo. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bargain Hunters: These 3 Growth Stocks Haven't Been This Cheap in Years. Here's Why They Could Be Good Contrarian Buys

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Burlington Stores Inc (Symbol: BURL), where a total volume of 8,358 contracts has been traded thus far today, a contract volume which is representative of approximately 835,800 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 73.8% of BURL's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $260 strike put option expiring July 17, 2026, with 8,010 contracts trading so far today, representing approximately 801,000 underlying shares of BURL. Below is a chart showing BURL's trailing twelve month trading history, with the $260 strike highlighted in orange:
Duolingo Inc (Symbol: DUOL) saw options trading volume of 10,326 contracts, representing approximately 1.0 million underlying shares or approximately 73.6% of DUOL's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $125 strike call option expiring June 12, 2026, with 689 contracts trading so far today, representing approximately 68,900 underlying shares of DUOL. Below is a chart showing DUOL's trailing twelve month trading history, with the $125 strike highlighted in orange:
And nLight Inc (Symbol: LASR) options are showing a volume of 9,086 contracts thus far today. That number of contracts represents approximately 908,600 underlying shares, working out to a sizeable 65.9% of LASR's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $40 strike put option expiring December 18, 2026, with 8,224 contracts trading so far today, representing approximately 822,400 underlying shares of LASR. Below is a chart showing LASR's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for BURL options, DUOL options, or LASR options, visit StockOptionsChannel.com.
Further BURL Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: BURL, DUOL, LASR

Key Points
Duolingo's valuation has gotten cheap for a stock growing this fast.
Investors are looking for values as AI stocks go exponential.
If results inflect, as expected, over the next year Duolingo's stock could be a steal for investors.
Shares of Duolingo (NASDAQ: DUOL) have jumped 10% in trading on Monday as the company benefits from investors looking for value in growing software stocks. But the company may have long-term tailwinds that will last more than today and this is a great opportunity.
In this video, I highlight the improving metrics behind the business and why Duolingo's stock could be a great long-term buy.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
*Stock prices used were end-of-day prices of June 8, 2026. The video was published on June 8 2026.
Should you buy stock in Duolingo right now?
Before you buy stock in Duolingo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Duolingo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 8, 2026.
Travis Hoium has positions in Duolingo. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	13.87 19.50
Price/Sales	5.39 0.69
P/B	4.08 1.82
P/FCF	13.77 14.60

Indicator	TTM Median
ROE	31.37 15.10
ROA	22.57 4.87
ROI	31.28 8.60
Net Worth	5.63 0.87
Quick Ratio	0.00 0.86
Current Ratio	2.62 1.40

Indicator	TTM Median
Net Profit Margin	38.40 5.74
Operating Margin	14.19 8.17
Gross Margin	72.70 39.42
Return on tangible equity	35.15 21.15

Indicator	TTM Median
EPS	0.94 0.49
EPS Forecast	0.79 0.46
Revenue	210.00M 192.50M
Gross Profit	213.00M —
EBITDA	48.00M —

Duolingo, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue