Duolingo, Inc.

Key Points
Duolingo's digital language education platform is used by 128 million people every single month.
Duolingo is using artificial intelligence to deliver a better learning experience, and it's contributing to rapid revenue and earnings growth.
Duolingo stock is down 42% from its recent record high, and its valuation is finally starting to look attractive.
Duolingo (NASDAQ: DUOL) runs the world's most popular digital language education platform, and its stock was up by as much as 65% earlier this year as investors rewarded the company's spectacular revenue and earnings growth.
However, the stock reached a very expensive valuation that wasn't sustainable, so it has since declined by 42% from its May peak of around $540. But this might be the buying opportunity investors have been waiting for, because Duolingo's education platform looks set to continue delivering strong growth with the help of an expanding portfolio of artificial intelligence (AI)-powered features.
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The company is scheduled to release its operating results for the third quarter of 2025 (ended Sept. 30) on Nov. 5. Here's why investors might want to buy the stock ahead of the report.
AI is transforming the learning experience
Duolingo is popular for its interactive and gamified learning experience, which it primarily delivers through its mobile application. The platform takes education out of the formal classroom setting and places it at the fingertips of anyone with a smartphone, enabling it to reach a much wider audience.
Duolingo had 128 million monthly active users in the second quarter of 2025 (ended June 30), which was up 24% from the year-ago period. The company makes money by showing ads to its free users, but it also offers paid subscriptions to users who want to accelerate their learning with additional features. The platform had 10.9 million paying subscribers in the second quarter, which was up 37% year over year.
Duolingo Max is the platform's most expensive subscription tier. Its main selling point is its expanding list of AI features, like Roleplay, which uses a chatbot interface to help users practice their conversational skills in a language of their choice, and Explain My Answer, which offers personalized feedback after each lesson. Last year, Duolingo also launched a new tool called Video Call, which uses an AI-powered digital avatar named Lily to help Max subscribers practice their speaking skills.
The Max subscription tier brings Duolingo one step closer to its long-term goal of creating a digital learning experience that rivals a human tutor. Max subscribers represented 8% of the platform's total subscriber base at the end of the second quarter, but that figure is growing, and it's something investors should watch when the company releases its third-quarter report on Nov. 5.
Duolingo is generating rapid growth at the top and bottom line
Duolingo's revenue came in at $252.3 million during the second quarter. It grew by 41% from the year-ago period, which marked an acceleration from the 38% growth the company delivered in the first quarter just three months earlier.
The high-end of management's guidance suggests revenue grew by around 35.5% to $261 million in the third quarter, but Duolingo has a habit of beating its own expectations. In the second quarter, for example, its revenue cleared the top end of management's forecasted range by almost $11 million.
In fact, the strong Q2 result prompted management to raise its 2025 revenue guidance for the second time this year, to over $1 billion. It would be the first time in Duolingo's history that its annual revenue crosses the billion-dollar milestone.
Turning to the bottom line, Duolingo generated $44.8 million in net income on a generally accepted accounting principles (GAAP) basis during Q2, which was up by an eye-popping 84%. This figure could influence the direction of Duolingo stock (more on this in a moment), so another blistering result on Nov. 5 would be very bullish.
Duolingo's valuation has declined to a more reasonable level
Duolingo's price-to-sales (P/S) ratio soared to above 30 back in May, which was simply unsustainable. But the 42% decline in its stock since then has pushed its P/S ratio down to 17.1, which isn't necessarily cheap, but it's far more reasonable considering the company's rapid revenue growth.
A similar trend is unfolding if we measure Duolingo's valuation using its earnings (profits). Its price-to-earnings (P/E) ratio was over 250 a few months ago, making the stock 10 times more expensive than the S&P 500, which trades at a P/E ratio of around 25. It remains quite high at 130 as I write this, but the company's profits are growing so fast that its valuation is actually attractive when we look just one year into the future.
Wall Street's consensus estimate (provided by Yahoo! Finance) suggests Duolingo's earnings per share (EPS) will grow to $8.34 in 2026, placing the stock at a forward P/E ratio of just 37.
As a result, investors who have been waiting to buy this growth stock might have a great opportunity now that it's down 42% from its record high.
Should you invest $1,000 in Duolingo right now?
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool 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.

1 Spectacular Artificial Intelligence (AI) Stock Down 42% You'll Regret Not Buying on the Dip

Investors in Duolingo Inc (Symbol: DUOL) saw new options become available today, for the December 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DUOL options chain for the new December 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $305.00 strike price has a current bid of $32.30. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $305.00, but will also collect the premium, putting the cost basis of the shares at $272.70 (before broker commissions). To an investor already interested in purchasing shares of DUOL, that could represent an attractive alternative to paying $309.40/share today.
Because the $305.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 10.59% return on the cash commitment, or 89.81% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Duolingo Inc, and highlighting in green where the $305.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $315.00 strike price has a current bid of $33.50. If an investor was to purchase shares of DUOL stock at the current price level of $309.40/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $315.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.64% if the stock gets called away at the December 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DUOL shares really soar, which is why looking at the trailing twelve month trading history for Duolingo Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DUOL's trailing twelve month trading history, with the $315.00 strike highlighted in red:
Considering the fact that the $315.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 46%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 10.83% boost of extra return to the investor, or 91.82% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 87%, while the implied volatility in the call contract example is 88%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $309.40) to be 62%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
S&P 500 Components Hedge Funds Are Buying
ARX Videos
Institutional Holders of NEM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting DUOL Put And Call Options For December 5th

Jacobs Solutions Inc. J has been appointed by Dallas-Fort Worth International Airport (DFW) to lead a digital transformation project. In partnership with PA Consulting, the company will execute a transformative initiative designed to set new benchmarks and best practices for intelligent, data-driven operations at one of the world’s busiest airports.
The primary goal of the project is to develop a future-ready airport by embedding cybersecurity capabilities alongside artificial intelligence (AI), machine learning (ML) and data analytics to enable forward-looking decision-making and to support long-term innovation. Leveraging Jacobs' industry-leading expertise in AI, ML and data analytics alongside PA Consulting’s strengths in digital transformation, aviation strategy and innovation, the initiative is designed to address DFW’s key operational challenges and deliver value across the entire asset lifecycle.
Following the news, shares of Jacobs gained 1.7% during trading hours yesterday.
Focus on Investments in Modernization to Fuel Growth
The demand for Jacobs' consulting services has grown as a result of its effective project execution in a number of industries, including life sciences, infrastructure, water, environment, space, broadband and cybersecurity. This momentum is reflected in a steady stream of contract wins and sustained increases in client spending across the business.
During the third quarter of fiscal 2025, Jacobs secured key Water & Environmental projects, including the modernization of the Little Miami Wastewater Treatment Facility to support regional biosolids reuse and renewable energy. The company also provided EPCM services to convert a legacy manufacturing site in the Southeastern United States into a high-performance data center. Together, these initiatives highlight J’s growing role in delivering future-ready infrastructure that supports economic growth, sustainability and community well-being worldwide.
Reinforcing Jacobs’ Leadership in Aviation Infrastructure
In addition to its work with DFW, Jacobs is advancing major airport projects globally, including at Heathrow (the U.K.), Denver, Los Angeles, Atlanta and the upcoming Noida International Airport in India. This expanding international portfolio showcases the company’s strength in delivering intelligent, sustainable infrastructure. Beyond aviation, Jacobs is driving innovation across smart cities, geospatial systems and digital twin technologies, demonstrating its growing role in solving complex infrastructure challenges worldwide.
Jacobs’ selection by Dallas Fort Worth International Airport for a transformative digital initiative reinforces its strong relationships within the public infrastructure sector. This engagement showcases its credibility and execution capabilities in delivering intelligent, data-driven solutions for critical public assets. As airports and transportation authorities across North America accelerate their modernization efforts, this project further positions Jacobs as a trusted partner for future government-backed infrastructure and technology initiatives.
At the end of the third quarter of fiscal 2025, consolidated backlog reached a new high of $22.7 billion, up 14.3% from the previous year, with a trailing 12-month book-to-bill ratio of 1.2x. A solid quarter for bookings is reflected in the 14% year-over-year growth in gross profit in backlog, which is a favorable indicator of the company's standing for the near and long term.
J’s Share Price Performance
Jacobs’ stock has gained 13.1% in the past three months compared with the Zacks Technology Services industry’s 28.6% growth. Despite the ongoingglobal marketuncertainties, the company is expected to continue benefiting from strong trends in infrastructure modernization, energy transition and national security backed by government initiatives.
Image Source: Zacks Investment Research
J’s Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Business Services sector are Acuity, Inc. AYI, AppLovin Corporation APP and Duolingo, Inc. DUOL.
Acuity presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 7.6%, on average. Acuity stock has jumped 24.9% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Acuity’s 2025 sales and earnings per share (EPS) indicates growth of 9.7% and 9.7%, respectively, from the year-ago period’s levels.
AppLovin carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 22.4%, on average. AppLovin's stock has surged 87.4% year to date.
The Zacks Consensus Estimate for AppLovin’s 2025 sales and EPS indicates growth of 18% and 103%, respectively, from the prior-year levels.
Duolingo has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 25.5%, on average. Duolingo stock has gained 4% year to date.
The Zacks Consensus Estimate for Duolingo’s 2025 sales and EPS indicates growth of 36.2% and 68.1%, respectively, from the prior-year levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jacobs Expands AI Reach With DFW Airport Deal, Stock Up

Key Points
Two of these companies need the buildout of AI data centers to continue for the next several years to be good investments.
The other company is using AI to add new features that are turning more of its users into paying subscribers.
A stock market bubble happens when the value of stocks grows faster than the value of the businesses they represent. And there's good reason to believe investors are in one right now.
Years ago, famed investor Warren Buffett proposed a metric to measure stock valuations generally -- take the entire value of the U.S. stock market and divide it by U.S. GDP. Today, investors call this metric the Warren Buffett indicator. That number is at an all-time high and far beyond the level that Buffett described as "playing with fire."
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If there is a bubble right now, it's undoubtedly been inflated by artificial intelligence (AI) stocks. Top AI stocks such as Nvidia, Oracle, and Palantir have all surged in 2025 and are large enough to account for a material portion of total market gains.
While fears of an AI-fueled stock market bubble may be rising, there are still AI stocks that represent bargains right now. Three such names are worth a look.
1. Can Micron push past cyclicality?
Shares of Micron Technology (NASDAQ: MU) are hitting all-time highs in 2025. The maker of memory products is enjoying a surge in revenue and a fattening profit margin, but the stock trades at less than 12 times forward earnings estimates. What's not to like? Well, investors have been burned here before.
When it comes to memory products, demand regularly surges every few years, pushing Micron's revenue and profit margin higher. But then demand tapers back off, having the opposite effect on the business. So investors don't question whether or not Micron can make a ton of money right now -- AI needs memory and it's a great tailwind. They understandably question how long this bullish run will last.
It's risky for investors to say, "It's different this time," but maybe it is indeed different this time for Micron. The company's high-bandwidth memory (HBM) products are fueling impressive growth because of how important they are for data-center buildouts. Management even says its HBM capacity is almost completely sold out for 2026.
Will demand for data centers drop off after 2026? I personally doubt it. OpenAI is one of the leading names in artificial intelligence, and it's reportedly hoping to secure 250 gigawatts of electricity to power data centers by 2033. That amount is roughly the electricity generating capacity of Germany, and that's the energy demand from a single AI company. Keep in mind the competition will be building as well.
My point is that OpenAI and its competitors want to scale data centers by a seemingly impossible amount in coming years, as evidenced by how much power they need. And even if they don't hit their goals, this clearly indicates that AI data center demand will extend far beyond 2026, which should allow Micron to enjoy steady growth, making the stock an absolute bargain today.
2. Duolingo's AI strategy is working
Language learning company Duolingo (NASDAQ: DUOL) isn't at the forefront of AI infrastructure, but it's using AI to provide new products and features. The strategy is working.
Only about 8% of Duolingo's 128 million monthly active users are paying subscribers, but subscriptions accounted for 84% of total revenue in the second quarter of 2025. The implication is clear: If the company can get more users to pay for a subscription, the benefit to its financial results will be substantial.
This is where AI comes in. Duolingo's highest subscription tier has AI features, such as live conversation, which is quite important for language learners seeking to up their communication skills. These new features are proving popular as Q2 subscription revenue was up 46% year over year. This is on top of the 50% subscription revenue growth the company reported in 2024.
Trading at about 18 times sales, Duolingo stock may not look like a bargain to some. However, the stock is down 40% from the all-time high it reached earlier this year. If the company can continue to put up such strong growth numbers, then its current valuation will end up looking like a bargain in hindsight.
3. Can Super Micro Computer execute?
When trying to find a good investment, I start by looking for the seemingly impossible: A high-growth business with expanding profit margins that trades at a below-average valuation. It's a tall order, but Super Micro Computer (NASDAQ: SMCI) can be that stock -- if it can execute.
Supermicro's growth comes with the same caveat as Micron's: How long will the AI data center boom last before the clock strikes midnight? That said, its role in the data center ecosystem should help the company to sustain its top-line growth for some time yet. The company's fiscal 2026 started in July, and management expects net sales growth of at least 50% compared to fiscal 2025.
According to YCharts, Super Micro Computer stock trades at about 22 times its forward earnings estimates. For a company growing at least 50%, that looks quite cheap. But there's a small issue: The company's profit margin has trended lower with scale, a trend investors are wary will continue.
Supermicro's management believes its gross profit margin is bottoming out now, and the company is optimistic it can improve again long-term. Central to this optimism is the company's growing importance in data centers.
That's no sure thing, however. Fortunately, Supermicro's incredible revenue growth and ongoing profitability -- even at a lower margin -- could still make this stock a winner. And if margins improve, the stock could prove to be a very exciting investment.
While soaring AI stocks and high valuations make headlines, there are still reasonable bargains to be found in the AI space, including Micron, Duolingo, and Supermicro.
Should you invest $1,000 in Micron Technology right now?
Before you buy stock in Micron Technology, 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 Micron Technology 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 $642,328!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,134,270!*
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*Stock Advisor returns as of October 7, 2025
Jon Quast has positions in Micron Technology and Super Micro Computer. The Motley Fool has positions in and recommends Nvidia, Oracle, and Palantir Technologies. The Motley Fool 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.

Investors Fear a Bubble, but These Artificial Intelligence (AI) Stocks Could Still Be Bargains

Key Points
Figma's stock fell 26.2% in September 2025, its second consecutive month of double-digit losses following the company's August IPO.
Despite two months of steep declines, Figma shares still trade well above the $33 IPO price at nearly $52 per share.
The dramatic first-day IPO pop from $33 to $65.57 set up unrealistic expectations that are now being corrected in real time.
Shares of Figma (NYSE: FIG) fell 26.2% in September 2025, according to data from S&P Global Market Intelligence. That's the second double-digit price drop in two months, following Figma's initial public offering (IPO) on Aug. 1, 2025. On the upside, September's plunge was softer than August's 39% crash.
The company published its first quarterly report as a public company last month. The market reaction to that presentation accounted for most of August's investor pain.
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Wall Street wanted more from Figma's debut report
Figma posted 41% year-over-year revenue growth in the second quarter of 2025, landing at $249.6 million. Adjusted net income rose 39% to $19.8 million, but both the new tally and the year-ago figure rounded off to breakeven earnings per share. The analyst consensus had called for earnings near $0.08 per share on sales in the neighborhood of $248.7 million. So that was a mixed bag with a mild revenue surprise and a more substantial bottom-line miss.
Looking ahead, Figma's management issued fairly bullish revenue guidance, with next-quarter and full-year targets just ahead of the Wall Street consensus.
Investors shrugged off the solid revenues to focus on Figma's earnings miss instead. The stock fell 19.9% the next day, followed by continued volatility for the rest of the month.
What goes up on IPO day often comes down quickly
The stock soared sky high on its IPO date. The stock was priced for sale at $33 per share but closed the first trading day at $65.57. Even now, after two months of steep price drops, Figma's stock trades well above the official IPO price at nearly $52 per share.
Getting in early on exciting IPOs can be a risky business. It's not a hard and fast rule but skyrocketing first-day prices are often followed by harsh price corrections right away. That's really what's going on here, as Figma investors adjust their expectations after August's soaring debut.
And there may be further price drops in the months ahead. The stock still looks incredibly expensive, trading at 277 times trailing earnings and 28.5 times sales.
Figma's technology is indeed exciting, using artificial intelligence (AI) and advanced collaboration tools to help teams of people create stunning web sites and mobile apps. The client list includes big names like Netflix, Duolingo, Zoom, and The New York Times -- all online veterans with the resources to choose any graphic design platform. And they all ended up using Figma.
But even when the sky is the limit, there's always a limit. Figma's stock probably shouldn't be worth $25.4 billion at this early stage, but that's the deal today. I don't mind watching this cooldown playing out from Wall Street's sidelines. The original IPO price of $33 per share looks like a more reasonable entry point. The stock is just too hot to handle so far.
Should you invest $1,000 in Figma right now?
Before you buy stock in Figma, 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 Figma 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 $631,456!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,147,755!*
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Anders Bylund has positions in Duolingo and Netflix. The Motley Fool has positions in and recommends Netflix, The New York Times Co., and Zoom Communications. The Motley Fool 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 Figma's Stock Lost 26% Last Month

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AeroVironment, Inc. (Symbol: AVAV), where a total volume of 9,436 contracts has been traded thus far today, a contract volume which is representative of approximately 943,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 72.3% of AVAV's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $310 strike put option expiring October 03, 2025, with 436 contracts trading so far today, representing approximately 43,600 underlying shares of AVAV. Below is a chart showing AVAV's trailing twelve month trading history, with the $310 strike highlighted in orange:
Hawaiian Electric Industries Inc (Symbol: HE) options are showing a volume of 11,581 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 66.7% of HE's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $10 strike put option expiring November 21, 2025, with 10,043 contracts trading so far today, representing approximately 1.0 million underlying shares of HE. Below is a chart showing HE's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Duolingo Inc (Symbol: DUOL) options are showing a volume of 13,149 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 65.7% of DUOL's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $330 strike call option expiring October 10, 2025, with 892 contracts trading so far today, representing approximately 89,200 underlying shares of DUOL. Below is a chart showing DUOL's trailing twelve month trading history, with the $330 strike highlighted in orange:
For the various different available expirations for AVAV options, HE options, or DUOL options, visit StockOptionsChannel.com.
Also see:
TUBE Options Chain
Funds Holding EB
VVNT Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Wednesday Option Activity: AVAV, HE, DUOL

Rule Breaker Investing Mailbag: The House That Netflix Built

Market Cap Game Show: Planes, Steaks & Automobiles

Symbotic SYM and Duolingo DUOL are well-established names in the Zacks Technology Services industry. Symbotic, based in Wilmington, MA, develops, commercializes, and deploys innovative, comprehensive technology solutions for improving supply chain operations. Through its operations, SYM has emerged as a key player in the AI-enabled robotics technology field for the supply chain.
Duolingo operates as a mobile learning platform in the United States, China, the United Kingdom, and internationally. DUOL offers courses in 40 different languages through the Duolingo app. Moreover, DUOL provides a digital language proficiency assessment exam.
Given this backdrop, let’s examine closely to find out which technology services player currently holds the edge, and more importantly, which might be the smarter investment now.
The Case for SYM
Symbotic’s high backlog positions it to generate substantial revenues in the foreseeable future. We are optimistic about its margin expansion, driven by increased system deployment. Symbotic is a key provider of intelligent robotics systems for warehouses.
In the third quarter of fiscal 2025, the company had a backlog of $22.4 billion. Management stated that it expects to recognize nearly 11% of its remaining performance obligations as revenues in the next 12 months, 56% of its remaining performance obligations as revenues in the following 13-60 months, and the rest thereafter.
Revenues increased 26% year over year. We expect the top line to continue to be driven by the conversion of this sizable backlog. For the fourth quarter of fiscal 2025, Symbotic expects revenues in the $590-$610 million range and adjusted EBITDA in the $45-$49 million band.
In the third quarter, SYM delivered a negative earnings surprise. SYM’s earnings surprise history is not impressive. In the trailing four quarters, it surpassed the Zacks Consensus Estimate twice and missed in the other two, with an average negative surprise of 78.3%.
Symbotic Inc. Price and EPS Surprise
SYM’s partnership with Walmart WMT has been very profitable, accounting for a significant portion of its revenues. In January, Symbotic completed the acquisition of Walmart’s advanced systems and robotics business. Walmart is the largest customer of SYM. This gives rise to customer concentration risks. Also, Symbotic currently does not pay dividends and has no plans to do so, which weakens its appeal among income-focused investors.
The Case for DUOL
DUOL utilizes several AI applications to personalize and automate the learning process, analyze errors and create content. Its Birdbrain AI system analyzes real-time user performance. DUOL uses OpenAI’s large language models for content creation.
One of the strongest positives for Duolingo lies in how it is turning artificial intelligence and proprietary learner data into a competitive edge. Unlike many companies where AI remains a vague promise, Duolingo is embedding it directly into its product roadmap and financials. By using its massive learner dataset, the company can rapidly build and launch new verticals, such as music and chess, with a level of accuracy and personalization that competitors cannot easily replicate. The efficiency of AI has also translated into cost advantages.
In the second quarter of 2025, Duolingo raised its full-year outlook, partly because AI-related expenses came in lower than anticipated. Gross margin rose sequentially by 130 basis points to 72.4%, a clear sign that innovation is not hurting profitability. Even more impressive is how quickly AI is accelerating content expansion. The company rolled out 148 new language courses in April, marking its largest expansion ever. It had taken over a decade to build the first 100 courses, but AI-driven efficiencies enabled nearly 150 in less than a year. This ability to scale course content rapidly translates into stronger user engagement, deeper brand trust, and ultimately, sustainable growth in bookings.
Another positive for Duolingo is the way it is building a multi-pronged revenue model that extends far beyond language learning subscriptions. The company has been successfully steering more users toward premium tiers, with paid subscriptions now representing a significant portion of its revenue base. In the second quarter of 2025, paid subscribers increased 37% year over year. At the same time, it continues to monetize through advertising, in-app purchases, and partnerships, ensuring that growth is not overly reliant on a single channel.
Driven by the 41% revenue growth, Duolingo delivered a 65.4% earnings surprise in the June quarter. This was the third earnings beat for the company in the last four quarters, having missed the mark in the remaining quarter. The average beat is 25.5%
Duolingo Price and EPS Surprise
Duolingo's liquidity position is also robust, with a current ratio of 2.81 at the end of the second quarter of 2025 compared to the industry’s 1.78. A current ratio above 1 indicates that Duolingo is well-positioned to meet its short-term obligations, providing a buffer against potential financial challenges.
SYM Appears to Be Pricier than DUOL
Both these technology companies appear to be overvalued compared with the technology services industry on the basis of the price-to-sales ratio (forward 12 months). However, the reading of Symbotic is higher than that of Duolingo.
SYM’s P/S F12M Vs. Industry & DUOL
Image Source: Zacks Investment Research
Conclusion
While we are optimistic about SYM’s margin expansion, driven by increased system deployment, challenges like high valuation, unfavorable earnings surprise history and customer concentration risks raise concerns.
Meanwhile, Duolingo’s foundation of proprietary data and AI-driven efficiencies is enabling faster product rollouts, deeper user engagement and significant cost advantages. The company is also proving the scalability of its model beyond language learning, successfully expanding into areas like chess and music to broaden its market and boost retention. At the same time, it is diversifying revenues through premium subscriptions, advertising and testing services, reducing dependence on any single growth driver. Its liquidity position is also solid.
Given the above analysis, DUOL seems a better pick than SYM now.
While DUOL sports a Zacks Rank #1 (Strong Buy), SYM is currently #5 Ranked (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SYM vs. DUOL: Which Technology Services Stock Has an Edge Right Now?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Duolingo Inc (Symbol: DUOL), where a total of 15,508 contracts have traded so far, representing approximately 1.6 million underlying shares. That amounts to about 78.1% of DUOL's average daily trading volume over the past month of 2.0 million shares. Particularly high volume was seen for the $320 strike call option expiring October 10, 2025, with 1,173 contracts trading so far today, representing approximately 117,300 underlying shares of DUOL. Below is a chart showing DUOL's trailing twelve month trading history, with the $320 strike highlighted in orange:
Carvana Co (Symbol: CVNA) options are showing a volume of 19,459 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 76.9% of CVNA's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $420 strike call option expiring September 26, 2025, with 2,823 contracts trading so far today, representing approximately 282,300 underlying shares of CVNA. Below is a chart showing CVNA's trailing twelve month trading history, with the $420 strike highlighted in orange:
And DuPont (Symbol: DD) options are showing a volume of 20,813 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 74.9% of DD's average daily trading volume over the past month, of 2.8 million shares. Especially high volume was seen for the $95 strike call option expiring January 16, 2026, with 7,537 contracts trading so far today, representing approximately 753,700 underlying shares of DD. Below is a chart showing DD's trailing twelve month trading history, with the $95 strike highlighted in orange:
For the various different available expirations for DUOL options, CVNA options, or DD options, visit StockOptionsChannel.com.
Also see:
Ray Dalio Stock Picks
MTGP Videos
Top Ten Hedge Funds Holding IPOA
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	231.84 18.21
Price/Sales	24.30 0.65
P/B	18.54 1.75
P/FCF	73.40 14.46

Indicator	TTM Median
ROE	9.60 15.91
ROA	6.55 5.60
ROI	9.10 9.40
Net Worth	15.02 0.91
Quick Ratio	0.00 0.91
Current Ratio	3.28 1.45

Indicator	TTM Median
Net Profit Margin	10.39 6.40
Operating Margin	5.51 8.93
Gross Margin	73.07 38.46
Return on tangible equity	9.92 23.70

Indicator	TTM Median
EPS	0.49 0.43
EPS Forecast	0.36 0.39
Revenue	178.00M 184.50M
Gross Profit	131.00M —
EBITDA	21.00M —

Duolingo, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue