Duolingo, Inc.

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Средний индекс, значительно упал. Рынок не поддерживает быков.

Medium index, significantly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

Duolingo (NASDAQ: DUOL) is prioritizing customer growth over monetization.
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 »
*Stock prices used were the afternoon prices of Sept. 26, 2026. The video was published on Sept. 28, 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 $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
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*Stock Advisor returns as of September 30, 2026.
Parkev Tatevosian, CFA 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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Why I'm Not Buying Duolingo Stock (Yet)

Key Points
CEO Luis Von Ahn sold 28,292 shares at a weighted average price of $150.22 on September 16, 2026, totaling $4.3 million.
The transaction involved 100% of the direct Class A Common Stock holdings held before the filing.
The activity was executed directly by the insider using a Rule 10b5-1 trading plan adopted on June 2, 2026.
Luis von Ahn, Chief Executive Officer, President, and Co-Founder of Duolingo, Inc. (NASDAQ:DUOL), disposed of 28,292 shares of Class A Common Stock on September 16, 2026, for a total value of $4.3 million, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
$4.3 million
Shares sold (directly held)
28,292
Post-transaction shares (directly held)
0
Transaction value based on SEC Form 4 weighted average sale price ($150.22); post-transaction value based on September 16, 2026 market close ($148.17).
Key questions
What prompted this disposition of Class A Common Stock?
The sale was executed under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling company stock to avoid concerns regarding trading on non-public information.
How does this impact the CEO's overall equity exposure?
While the direct Class A Common Stock holding was fully liquidated in this filing, the CEO continues to hold ~3.4 million derivative securities, including Class B Common Stock that is convertible into Class A shares at the holder's option.
What is the recent performance context for Duolingo shares?
As of the transaction date on September 16, 2026, the stock had delivered a one-year total return of -47%.
What are the specifics of the price execution?
The shares were sold in multiple transactions at weighted average prices ranging from $150.00 to $152.55 across different execution tranches.
Company Overview
Share Price (as of market close 2026-09-18)
$141.90
Market Capitalization
$6.7 billion
Revenue (TTM)
$1.1 billion
Net Income (TTM)
$410.8 million
Company Snapshot
Duolingo operates a digital language learning platform accessible via web and mobile applications, offering comprehensive curricula across various languages including Spanish, English, French, Japanese, German, Italian, Chinese, and Portuguese, with revenue generated through subscription services and premium features.
The company employs a freemium business model, providing free access to core language learning content while monetizing through premium subscription tiers and in-app purchases, supplemented by digital language proficiency assessments.
The platform serves a global audience, targeting individual language learners across diverse demographics seeking accessible, technology-enabled language education solutions.
Duolingo, Inc. operates the world's most widely used language learning application, with a market cap of $6.7 billion. The company has established a dominant position in digital language education through its engaging, gamified learning experience and scalable technology platform.
With a strong profitability profile generating $410.8 million in trailing 12-month net income, Duolingo demonstrates the viability of its freemium model and its ability to monetize a global user base while maintaining market leadership in the language learning software category.
What this transaction means for investors
Duolingo CEO Luis von Ahn's September 16 sale of company shares resulted in the complete liquidation of his directly held Class A shares. While this might appear to be cause for alarm, the executive maintains a sizable equity position of about 3.4 million directly held Class B stock after the disposition. This ensures his continued alignment with shareholder interests.
The disposal involved converting 28,292 stock options that were then immediately sold as Class A shares. This is a common strategy among insiders, and was dictated by a pre-established Rule 10b5-1 plan, making the sale a non-discretionary transaction.
Duolingo's stock had fallen 47% over the past year at the time of von Ahn's disposition. Shares are down because the company decided to prioritize user growth and retention over short-term profits, which led to Wall Street investors selling the stock.
However, Duolingo's strategy is paying off. Its second-quarter sales rose 18% year over year to $298.5 million. Its initiatives to bring in users resulted in an outstanding 23% year-over-year increase in daily active users to 58.7 million, which is ahead of Duolingo's projections.
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 $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
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*Stock Advisor returns as of September 19, 2026.
Robert Izquierdo has positions in Duolingo. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy.

Duolingo CEO Liquidates His Entire Class A Directly-Held Company Shares for $4.3 Million

Key Points
The transaction involved 8,072 shares executed on September 14, 2026, for a total value of ~$1.2 million.
The shares traded represent 16% of the equity holdings held by the insider before the transaction.
The disposal was executed from the insider's directly-held stock position.
General Counsel Stephen C. Chen reported a sale of 8,072 shares of Duolingo, Inc. (NASDAQ:DUOL) on Sept. 14 in a SEC Form 4 filing.
Transaction summary
Transaction value
$1.2 million
Shares sold
8,072
Post-transaction shares (directly held)
43,769
Post-transaction value
$6.62 million
Transaction value based on SEC Form 4 weighted average sale price ($149.33); post-transaction value based on September 14, 2026 market close ($151.14).
Key questions
What prompted this disposition of Class A Common Stock?
The transaction was conducted pursuant to a Rule 10b5-1 trading plan that Stephen C. Chen adopted on June 14, 2026, which allows insiders to set a pre-determined schedule for selling shares.
How does this impact the insider's remaining direct ownership?
Following the sale of 8,072 shares, the General Counsel maintains a direct stake of 43,769 shares, representing a 0.09% ownership interest in the company.
What is the recent stock performance relative to this transaction?
The sale was executed at $149.33 per share, while the stock has delivered a -51% return over the 12-month period ending on the September 14, 2026 transaction date.
What are the current valuation levels for the company?
As of the September 15, 2026 market close, shares were priced at $153.92, giving the company a market capitalization of $6.9 billion.
Company Overview
Share Price (as of market close 2026-09-15)
$153.92
Market Capitalization
$6.9 billion
Revenue (TTM)
$1.1 billion
Net Income (TTM)
$410.8 million
Company Snapshot
Duolingo operates a comprehensive language learning platform accessible via web and mobile applications, offering instruction in multiple languages including Spanish, English, French, Japanese, German, Italian, Chinese, and Portuguese, with revenue generated through subscription services and in-app purchases.
The company employs a freemium business model supplemented by premium subscription tiers that provide ad-free experiences and advanced learning features, while also monetizing through digital language proficiency assessments.
The platform serves a global user base, targeting individuals seeking accessible and engaging language acquisition across diverse proficiency levels and demographics.
Duolingo, Inc. has established itself as a leading digital language learning platform with a market cap of $6.9 billion, demonstrating significant scale in the educational technology sector. The company's differentiated approach combines gamification, mobile-first design, and extensive language curriculum to drive user engagement and retention.
With a net profit margin of 37.4% on trailing 12-month net income of $410.8 million, Duolingo exhibits strong operational efficiency and profitability characteristics typical of high-margin software platforms.
What this transaction means for investors
The September 14 sale of Duolingo stock by the company's General Counsel, Stephen Chen, at $149.33 per share occurred at a time when shares had plunged from a 52-week high of $353. His disposal was not a market-timed investment decision, however.
The sale was executed as part of a pre-established Rule 10b5-1 plan, making this a non-discretionary transaction. Insiders often adopt such plans to meet portfolio diversification or liquidity needs while operating within SEC guidelines.
Chen's disposition represented 16% of his pre-sale direct holdings, which is a significant percentage. That said, he retains 43,769 shares, ensuring his continued alignment with shareholder interests.
Duolingo stock is down because the company's management decided to prioritize user growth and retention over profits in the short term. Even so, Duolingo's second-quarter sales delivered 18% year-over-year growth to $298.5 million. Its efforts to bring in users resulted in a strong 23% year-over-year increase in daily active users to 58.7 million, which is ahead of Duolingo's projections, and demonstrates its strategy is working.
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 $433,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,254!*
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*Stock Advisor returns as of September 15, 2026.
Robert Izquierdo has positions in Duolingo. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy.

Duolingo's General Counsel Sells Over 8,000 Shares for $1.2 Million After the Stock's 51% One-Year Decline

Key Points
Duolingo CEO Luis von Ahn said in early September that sunsetting Max is an option.
It's already happening, and new subscribers don't see Max as an option anymore.
The AI-powered video call feature now costs Duolingo about a penny per call, down from roughly 30 cents.
Duolingo (NASDAQ: DUOL) is doing something unexpected. The company appears to be ending its ultra-premium Max tier.
Premium subscriptions are far more lucrative than free user accounts with ad-supported services. The double-priced Max subscription tier has been a core business focus since its introduction in 2023. So why is it going away already?
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 »
I'll take a look at that. First, let me explain what's going on.
The Max tier that wasn't there
I have a streak of daily Duolingo lessons going back to June 2016. My kids are less committed, so I decided to let my family plan expire last week. The plan was always to grab a Super subscription just for me instead, but let's take a couple of lessons first to see the difference.
Two ads later, I was signing up for a free trial. And there were some surprises in that process.
I noticed that the top-shelf Max level wasn't an option. Just Super, Super Family, and the newer Super Lite (which is cheaper but keeps some ads). Hmm. Maybe that's just for the free trial week?
But no, it's not that simple. You see, Duolingo's sign-up process said the Super plan would include features I always associated with Max. You know, the AI-based stuff. Video calls with fictional characters in a handful of popular languages, plus the "explain my mistake" function. These things were worth double the price yesterday. Today, they're included in the basic Super subscription.
First, I thought it might be one of many user experience tests, where I'm randomly chosen for a small test sample while most users still get the old sign-up flow. So I tried signing up as a new user instead (with a different email address in an incognito browser window). Same options, same sign-up process, except for filling in the basic info and trying a beginner-level lesson. The plan choices were identical.
Doesn't look like a test case to me.
The CEO has been hinting at this since last month
If you've been following the earnings calls, this isn't a total surprise. CEO and co-founder Luis von Ahn has been telegraphing this move for months, just without putting a firm date on it.
In last month's Q2 2026 call, von Ahn laid it out pretty clearly. "My goal in the moment is to make [Video Call] available to all Super subscribers," he said. He also noted the company hadn't figured out Max's future yet. Maybe Super users would get limited access to the ultra-premium features, while Max could bring unlimited use. "Another possibility, truthfully, is that we may actually sunset Max."
At a Citi tech industry conference last week, von Ahn went a step further.
"We're not entirely sure what we're going to do with Max," he said.
It's still there. People are still paying for it, but we're not entirely sure. There are some options.
Doing the subscriber math
My resubscription experience suggests that Max is no longer available to new subscribers, but current users are still paying for it. Stepping them down to the Super tier may happen organically, as each subscription comes up for annual renewal. Luis von Ahn doesn't want to sacrifice revenues in this process, so the broader feature set for Super subscriptions should make up for the lost Max premium.
Max currently accounts for about 10% of the total paid subscriber base, and the paid subscriber count is growing at 17% year over year. So if 10% of subscribers are moving down to the half-cost plan, boosting the paid user growth to 26% would make up for the lost Max revenue.
Why open source changed the equation
And that's not the whole story. There's also a cost-saving component to this shift in the economic balance.
The video calls used to be powered by OpenAI's ChatGPT, costing the company about $0.30 per call. In recent quarters, Duolingo has moved to open-source LLM models, driven by the company's own systems and proprietary language data. The cost per call has dropped to $0.01, according to the Citi presentation. One call a day is now about as expensive as one a month used to be.
"Open source all the way," von Ahn said.
And with these lower back-end expenses, there's less of a need for high-priced subscription plans. It's not all about revenue, as Duolingo focuses on profitable top-line growth.
Watch for the marketing push
So the rollout of more powerful Super plans and the retirement of Max will be gradual. There's not much marketing behind this shift yet, but that should change. Duolingo's popular social media channels will bring out a new message soon enough -- an affordable Super plan gets you all the fancy Max features nowadays.
And the nextearnings callshould bring more clarity, if nothing else. That's a must-see event in mid-November.
The cheat code other companies should copy
Duolingo is executing a real-time simplification of its premium offerings, enabled by far lower AI costs. It sounds like a cheat code for companies with AI-budget issues.
If you're a user, you're getting a better deal. If you're a Duolingo shareholder, the company is trying to accelerate its premium subscriber growth while also boosting profit margins.
In the meantime, don't forget your lesson. The green owl is watching. Duo is always watching.
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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 212% 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 September 14, 2026.
Anders Bylund has positions in Duolingo. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy.

The Green Owl Is Ending Duolingo's Own Cash Cow. Here's Why That's Good News For Users and Investors.

Key Points
The disposition involved 10,000 shares with an estimated value of ~$1.5 million as of the September 8, 2026 transaction date.
The shares traded represent 13% of the director's Class A Common Stock held prior to the execution.
The transaction was composed entirely of directly held shares; no indirect ownership was reported in this filing.
William B. Gordon, a member of the Board of Directors at Duolingo, Inc. (NASDAQ:DUOL), sold 10,000 shares of Class A Common Stock on September 8, 2026, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
~$1.5 million
Shares sold
10,000
Post-transaction shares (directly held)
68,415
Post-transaction value
~$10.02 million
Transaction value based on SEC Form 4 weighted average sale price ($145.67); post-transaction value based on September 8, 2026 market close ($146.39).
Key questions
What governed the timing of this transaction?
The sale was carried out under a Rule 10b5-1 trading plan adopted on June 9, 2026, which allows insiders to establish a predetermined schedule for stock dispositions.
How much of the company does the director continue to hold?
Following this sale, Gordon maintains direct ownership of 68,415 shares of Class A Common Stock, representing an approximate 0.15% stake in the company.
What was the share price context for the execution?
The shares were sold at a weighted average price of $145.67, while the stock was down 46% for the year ending on the September 8, 2026 transaction date.
What is the scope of the insider's reported holdings?
The current filing disclosed equity interests exclusively in the form of directly held Class A Common Stock for the Pittsburgh-based language learning platform.
Company Overview
Share Price (as of market close 2026-09-10)
$145.16
Market Capitalization
$6.7 billion
Revenue (TTM)
$1.1 billion
Net Income (TTM)
$410.8 million
Company Snapshot
Duolingo operates a comprehensive language learning platform and mobile application offering instruction across multiple languages, including Spanish, English, French, Japanese, German, Italian, Chinese, and Portuguese, while also providing digital proficiency assessments to users globally.
The company generates revenue through a freemium subscription model, monetizing its user base via premium subscription tiers, in-app purchases, and language proficiency examination fees.
Duolingo serves a diverse global customer base, targeting language learners across all proficiency levels seeking accessible, technology-enabled language education.
Duolingo, Inc. is a leading digital language learning platform with a market cap of $6.7 billion, demonstrating substantial scale in the education sector. The company's business model leverages a large user base with high engagement metrics, converting free users to premium subscribers while maintaining operational efficiency.
Duolingo's competitive advantages include its proprietary gamified learning methodology, extensive language curriculum, and strong brand recognition in the language learning market.
What this transaction means for investors
Director William Bing Gordon's Sept. 8 sale of Duolingo stock represented a substantial 13% reduction in his direct holdings. With the share price down a hefty 46% over the trailing 12 months, his disposition could raise investor concerns.
That said, Gordon retains a sizable equity stake of 68,415 shares post-transaction. This sum ensures his continued alignment with shareholder interests.
The sale was the result of a pre-established Rule 10b5-1 plan, making this a non-discretionary transaction. Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information.
Duolingo stock is down because the company made the decision to prioritize user growth and retention over profits in the short term. This led to a year-over-year decline in net income and free cash flow in the second quarter, but a 23% year-over-year increase in daily active users to 58.7 million, ahead of Duolingo's projections in a sign its efforts are paying off.
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 $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% 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 September 10, 2026.
Robert Izquierdo has positions in Duolingo. The Motley Fool has positions in and recommends Duolingo. The Motley Fool has a disclosure policy.

A Duolingo Director Sells 10,000 Shares for $1.5 Million Amid a 46% One-Year Decline in the Stock

The S&P 500 Index ($SPX) (SPY) closed down by -0.71% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.79%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.29%. E-mini S&P futures (ESU26) fell -0.71%, and September E-mini Nasdaq futures (NQU26) fell -1.25%.
Stock indices retreated on Tuesday, with the S&P 500 falling to a 4-week low, the Dow Jones Industrials sliding to a 1-month low, and the Nasdaq 100 posting a 1-week low. Stocks fell as surging oil prices boosted inflation expectations and bond yields and ramped up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify over persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields sparked a retreat in chipmakers and AI-infrastructure stocks on Tuesday.
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Tuesday’s global bond sell-off pushed bond yields to multi-year highs and undercut stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Stocks maintained their losses on Tuesday amid weaker-than-expected US economic news, including Aug ISM manufacturing, July construction spending, and July JOLTS job openings.
The US Aug ISM manufacturing index fell -1.0 to 54.6, weaker than expectations of 55.2. The Aug ISM prices paid sub-index was unchanged at 71.1, stronger than expectations of a decline to 70.8.
US July construction spending fell by -0.5% m/m, weaker than expectations of no change.
The US July JOLTS job openings unexpectedly rose +89,000 to 7.271 million from a downward-revised 7.182 million in June, weaker than expectations of 7.313 million.
Hawkish comments on Tuesday from Fed Governor Michael Barr were bearish for stocks and bonds when he said, "If inflation appears not to be moderating sufficiently, then I think we should act decisively to raise interest rates."
Oct WTI crude oil prices (CLV26) surged more than +5% on Tuesday to a 6-week high as Middle East hostilities escalated. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran.
Crude prices raced to their highs Tuesday afternoon when the US launched a fresh wave of strikes against targets in Iran in retaliation for Iran trying to put mines in the Strait of Hormuz and for earlier strikes on a US military base in Jordan. Iran said it retaliated with a “decisive operation” against US bases in the Middle East.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 487 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 69% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled lower on Tuesday. The Euro Stoxx 50 fell to a 1-month low and closed down -0.80%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -9 ticks on Tuesday. The 10-year T-note yield rose +4.2 bp to 4.792%. T-notes dropped to a 1.75-year nearest-futures low on Tuesday, and the 10-year T-note yield rose to a 1.75-year high of 4.798%. T-notes were under pressure from Tuesday’s +5% surge in WTI crude oil prices to a 6-week high, which boosted inflation expectations and is hawkish for Fed policy. The 10-year breakeven inflation rate rose to a 1.5-week high of 2.360% on Tuesday. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 69% on Tuesday from 36% before he spoke.
Losses in T-notes were limited on Tuesday amid weaker-than-expected US economic news on Aug ISM manufacturing, July construction spending, and July JOLTS job openings that sparked some short covering in T-notes.
European government bond yields moved higher on Tuesday. The 10-year German bund yield rose to a 15-year high of 3.364% and finished up +2.0 bp to 3.344%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and finished up +15.7 bp to 5.220%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated on Tuesday amid the surge in bond yields. Lam Research (LRCX), Applied Materials (AMAT), KLA Corp (KLAC), ARM Holdings Plc (ARM), and Texas Instruments (TXN) closed down more than -3%. Also, Advanced Micro Devices (AMD), Microchip Technology (MCHP), ASML Holding NV (ASML), Micron Technology (MU), Analog Devices (ADI), and Qualcomm (QCOM) closed down more than -2%.
Cybersecurity stocks sold off on Tuesday, weighing on the broader market. CrowdStrike Holdings (CRWD) closed down more than -7%, and Cloudflare (NET) and SentinelOne (S) closed down more than -6%. Also, Palo Alto Networks (PANW), Fortinet (FTNT), and Zscaler (ZS) closed down more than -5%, and Okta (OKTA) closed down more than +4%.
Cryptocurrency stocks moved lower on Tuesday after Bitcoin (^BTCUSD) fell more than -2%. Circle Internet Group (CRCL), Strategy (MSTR), Riot Platforms (RIOT), and Coinbase Global (COIN) closed down more than -6%. Also, MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY) closed down more than -4%.
Mining stocks fell on Tuesday as gold, silver, and copper prices slumped. Freeport-McMoRan (FCX) closed down more than -4%, and Hecla Mining (HL), Anglogold Ashanti (AU), Barrick Mining (B), and Southern Copper (SCCO) closed down more than -3%. Also, Coeur Mining (CDE) and Newmont Corp (NEM) closed down more than -2%.
Home builders and home supplies fell on Tuesday after the 10-year T-note yield rose to a 1.75-year high, raising mortgage rates and weighing on housing demand. Builders Firstsource (BLDR) closed down more than -5%, and DR Horton (DHI), Pulte Group (PHM), KB Home (KBH), Toll Brothers (TOL), and Home Depot (HD) closed down more than -2%. Also, Lennar (LEN) closed down more than -1%.
Defensive health insurance stocks moved higher on Tuesday, with the slump in the broader market. Humana (HUM) and CVS Health Corp (CVS) closed up more than +3%, and Elevance Health (ELV), Cardinal Health (CAH), the Cigna Group (CI), and Molina Healthcare (MOH) closed up more than +2%. Also, UnitedHealth Group (UNH) and Centene (CNC) closed up more than +1%.
Fervo Energy (FRVO) closed up more than +28% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) closed up more than +7% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) closed up more than +4% after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Earnings Reports (9/2/2026)
Broadcom Inc (AVGO), Brown-Forman Corp (BF/B), Five Below Inc (FIVE), Hewlett Packard Enterprise Co (HPE), NetApp Inc (NTAP), Ollie's Bargain Outlet Holding (OLLI), PVH Corp (PVH), Snowflake Inc (SNOW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Settle Lower as Bond Yields Surge

The S&P 500 Index ($SPX) (SPY) is down by -0.44% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.96%. E-mini S&P futures (ESU26) are down -0.46%, and September E-mini Nasdaq futures (NQU26) are down -0.98%.
Stock indices are trading lower today, with the S&P 500 falling to a 4-week low and the Dow Jones Industrials and the Nasdaq 100 posting 1-week lows. Stocks are sliding as rising oil prices boost inflation expectations and ramp up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify about persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields have sparked a retreat in chipmakers and AI-infrastructure stocks today.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s global bond sell-off has pushed bond yields to multi-year highs and is undercutting stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Stocks maintained their losses today on weaker-than-expected US economic news, including Aug ISM manufacturing, July construction spending, and July JOLTS job openings.
The US Aug ISM manufacturing index fell -1.0 to 54.6, weaker than expectations of 55.2. The Aug ISM prices paid sub-index was unchanged at 71.1, stronger than expectations of a decline to 70.8.
US July construction spending fell -0.5% m/m, weaker than expectations of no change.
The US July JOLTS job openings unexpectedly rose +89,000 to 7.271 million from a downward revised 7.182 million in June, weaker than expectations of 7.313 million.
Hawkish comments today from Fed Governor Michael Barr were bearish for stocks and bonds when he said, "If inflation appears not to be moderating sufficiently, then I think we should act decisively to raise interest rates."
Oct WTI crude oil prices (CLV26) are up more than +2% today to a 6-week high as Middle East hostilities escalate. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-month low and is down -0.73%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -4 ticks today. The 10-year T-note yield is up +1.2 bp to 4.762%. T-notes dropped to a 1.75-year nearest-futures low today, and the 10-year T-note yield rose to a 1.75-year high of 4.796%. T-notes are under pressure from today’s +2% jump in WTI crude oil prices to a 6-week high, which boosts inflation expectations and is hawkish for Fed policy. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% today from 36% before he spoke.
T-notes recovered from their worst level today after weaker-than-expected US economic news on Aug ISM manufacturing, July construction spending, and July JOLTS job openings sparked short covering in T-notes.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 15-year high of 3.364% and is up +0.8 bp to 3.332%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and is up +13.6 bp to 5.199%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are retreating today amid the surge in bond yields. Qualcomm (QCOM), Lam Research (LRCX), Advanced Micro Devices (AMD), and KLA Corp (KLAC) are down more than -3%, and Applied Materials (AMAT), Analog Devices (ADI), Microchip Technology (MCHP), Marvel Technology (MRVL), ASML Holding NV (ASML), and Texas Instruments (TXN) are down more than -2%.
Cybersecurity stocks are weaker today, weighing on the broader market. CrowdStrike Holdings (CRWD) is down more than -6% to lead losers in the S&P 500 and the Nasdaq 100. Also, Palo Alto Networks (PANW) and SentinelOne (S) are down more than -5%, and Okta (OKTA), Fortinet (FTNT), and Zscaler (ZS) are down more than -4%, and Cloudflare (NET) is down more than +3%.
Cryptocurrency stocks are sliding today, with Bitcoin (^BTCUSD) down nearly -1%. Riot Platforms (RIOT) is down more than -5%, and Circle Internet Group (CRCL) and MARA Holdings (MARA) are down more than -3%. Also, Coinbase Global (COIN), Galaxy Digital Holdings (GLXY), Strategy (MSTR), and Iren Ltd (IREN) are down more than -2%.
Defensive health insurance stocks are climbing today, with the slump in the broader market. Humana (HUM) and CVS Health Corp (CVS) are up more than +3%, and Elevance Health (ELV), Centene (CNC), Cardinal Health (CAH), the Cigna Group (CI), and Molina Healthcare (MOH) are up more than +2%. Also, UnitedHealth Group (UNH) and Universal Health Services (UHS) are up more than +1%.
Amazon.com (AMZN) is down more than -2% to lead losers in the Dow Jones Industrials after the US Federal Trade Commission and a group of US states sued the company over claims it overcharged advertisers by more than $20 billion since 2019.
Fervo Energy (FRVO) is up more than +23% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) is up more than +5% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) is up more than +3% to lead gainers in the S&P 500 after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Global Bond Selloff Weighs on Stocks

The S&P 500 Index ($SPX) (SPY) is down by -0.66% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.30%. E-mini S&P futures (ESU26) are down -0.66%, and September E-mini Nasdaq futures (NQU26) are down -1.26%.
Stock indices are trading lower today, with the S&P 500 falling to a 4-week low and the Dow Jones Industrials and the Nasdaq 100 posting 1-week lows. Stocks are sliding as rising oil prices boost inflation expectations and ramp up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify about persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields have sparked a retreat in chipmakers and AI-infrastructure stocks today.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s global bond sell-off has pushed bond yields to multi-year highs and is undercutting stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Oct WTI crude oil prices (CLV26) are up more than +2% today to a 6-week high as Middle East hostilities escalate. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-month low and is down -0.61%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -7 ticks today. The 10-year T-note yield is up +3.2 bp to 4.782%. T-notes dropped to a 1.75-year nearest-futures low today, and the 10-year T-note yield rose to a 1.75-year high of 4.796%. T-notes are under pressure from today’s +2% jump in WTI crude oil prices to a 6-week high, which boosts inflation expectations and is hawkish for Fed policy. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% today from 36% before he spoke.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 15-year high of 3.364% and is up +1.7 bp to 3.341%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and is up +15.4 bp to 5.217%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are retreating today amid the surge in bond yields. Qualcomm (QCOM) is down more than -4%, and Marvel Technology (MRVL) and Intel (INTC) are down more than -3%. Also, Advanced Micro Devices (AMD), Applied Materials (AMAT), Analog Devices (ADI), Lam Research (LRCX), Microchip Technology (MCHP), NXP Semiconductors (NXPI), Broadcom (AVGO), KLA Corp (KLAC), Micron Technology (MU), and Texas Instruments (TXN) are down more than -2%. In addition, Nvidia (NVDA) is down more than -2% to lead losers in the Dow Jones Industrials.
Mining stocks are falling today, with the slump in gold, silver, and copper prices. Hecla Mining (HL) is down more than -4%, and Coeur Mining (CDE) is down more than -3%. Also, Newmont Corp (NEM), Anglogold Ashanti (AU), Barrick Mining (B), and Freeport-McMoRan (FCX) are down more than -2%, and Southern Copper (SCCO) is down more than -1%.
Cryptocurrency stocks are sliding today, with Bitcoin (^BTCUSD) down more than -1%. Circle Internet Group (CRCL) is down more than -69%, and Coinbase Global (COIN), Galaxy Digital Holdings (GLXY), Strategy (MSTR), Iren Ltd (IREN), MARA Holdings (MARA), and Riot Platforms (RIOT) are down more than -5%.
Cybersecurity stocks are weaker today, weighing on the broader market. Palo Alto Networks (PANW), SentinelOne (S), and Zscaler (ZS) are down more than -3%, and , CrowdStrike Holdings (CRWD) and Cloudflare (NET) are down more than +2%. Also, Okta (OKTA) and Fortinet (FTNT) are down more than -1%.
Defensive health insurance stocks are climbing today, with the slump in the broader market. Elevance Health (ELV), Centene (CNC), Humana (HUM), Cardinal Health (CAH), and CVS Health Corp (CVS) are up more than +2%. Also, UnitedHealth Group (UNH), the Cigna Group (CI), and Molina Healthcare (MOH) are up more than +1%.
Fervo Energy (FRVO) is up more than +10% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) is up more than +6% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) is up more than +3% to lead gainers in the S&P 500 after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Medtronic Plc (MDT) is up more than +2% after reporting Q1 revenue of $9.76 billion, stronger than the consensus of $9.54 billion, and raising its 2027 organic revenue forecast to +7.25% to +7.75% from a previous forecast of +6.75% to +7.25%.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Retreat as Global Bond Yields Surge

Key Points
Duolingo stock is down 74% from its peak, while its daily active users hit 58 million last quarter, and management still sees a path to 100 million by 2028.
"Grand Theft Auto" is a generational gaming franchise, positioning Take-Two for another major growth cycle when the next installment releases in November.
Finding companies with strong momentum and a clear competitive edge is one of the best ways to identify potential long-term winners. Duolingo (NASDAQ: DUOL) and Take-Two Interactive (NASDAQ: TTWO) both fit that profile.
Each company has momentum going in its favor and still has an attractive long-term opportunity. Here's why both look like compelling buy-and-hold investments for the next decade.
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 »
1. Duolingo
Duolingo is a popular language-learning app, with courses also in chess, music, and math, and it recently reached 58 million daily active users. The stock is down about 74% from its prior peak after management shifted its priority from revenue growth to user growth. That resulted in revenue growth slowing from a 39% increase in 2025 to just 18% year over year in the second quarter of 2026.
The stock's sell-off, however, creates an attractive setup for patient investors. The strategic shift is about long-term value creation: retaining more users today can build a much larger business over time.
Management is still targeting 100 million daily active users by 2028, which would set the stage for meaningfully higher revenue and earnings. The company's 11.5% second-quarter operating margin shows a profitable business model built around getting users to sign up for a subscription that unlocks additional features. It just needs more of them.
Duolingo attracts and keeps users with a simple, gamified interface that makes learning feel like playing a game. It also uses data and feedback from its large user base to continuously refine the product and improve monetization -- an advantage that's easy to miss but hard to replicate.
Artificial intelligence (AI) is another lever. Duolingo is using open-source models to lower costs while expanding features like conversation practice in its language courses. As AI improves, Duolingo is continually adding more value to users while driving down costs. This cycle of lowering costs and reinvesting the savings into better features can be a powerful driver of user growth over time.
Investors should still watch for risks. There is potential for new entrants using AI to increase competition. If daily active user growth begins to slow enough to put the company off track of reaching its user target, that would be a valid reason to reconsider the investment thesis.
Still, continuing to grow daily users at high rates could translate into a larger and more valuable business over the next decade. The stock trades at a reasonable forward price-to-earnings (P/E) ratio of 22, setting up the potential for excellent returns.
2. Take-Two Interactive
Take-Two's Grand Theft Auto (GTA) V sold 230 million copies since launching in 2013, and the franchise has sold 475 million copies across all versions over the last few decades. With the next installment slated for a November release, the series could continue to drive the company's momentum. The stock has delivered a market-beating 443% cumulative return over the past 10 years, and analysts expect earnings to grow at an annualized rate of 27% in the coming years.
Take-Two's Rockstar Games, the studio behind GTA, shared an extended look of GTA VI on Netflix on Aug. 27. Landing that kind of showcase highlights the franchise's growing audience.
What makes these games attractive to investors is that they can generate revenue long after the initial purchase. That shows up in Take-Two's recurrent consumer spending, which includes in-game purchases and advertising. In fiscal 2026 (which ended in March), recurrent spending grew 16% year over year to $5.2 billion, making up roughly three-quarters of the business.
Beyond its release slate, management also sees room to expand internationally, where some regions are still underrepresented. Take-Two is aiming to grow its presence in Latin America, the Middle East, and Asia, with a long-term goal of making international revenue the majority of total revenue within 10 years.
Of course, new releases carry risk. Even with what management calls an "exceptional start" to GTA VI pre-orders, launch issues like bugs or glitches can hurt reviews and disrupt early sales momentum. That's simply the nature of making games.
The long-term upside is worth considering a small position ahead of the new GTA release. The stock trades at a forward P/E of 33, which isn't cheap, but that valuation can still deliver market-beating returns over the next decade if Take-Two executes on its pipeline and grows earnings in line with Wall Street's expectations.
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 $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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 August 30, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Duolingo, Netflix, and Take-Two Interactive Software. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Monster Stocks to Buy for the Next 10 Years

Key Points
Netflix is down 32% over the past year, trading at just 21.6 times forward earnings.
Total returns matter; IBM's 11-year gains nearly triple when dividends are included.
Duolingo stock has fallen 55% in 52 weeks despite strong user growth and rising cash flow.
Diversification is a key concept of Foolish investing. These days, The Fool suggests holding at least 50 different stocks across various sectors, or achieving a similar effect through index funds.
I'm taking a hybrid approach. As of Aug. 25, my portfolio holds 56 stocks, cryptocurrencies, and exchange-traded funds (ETFs).
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 »
The holdings aren't equal, though. Some are smaller, tentative bets. One fund is simply a higher-yielding alternative to holding cash in my brokerage account. Most are strong convictions with long ownership histories, but I hesitate to buy more in this market.
But you're here to see the stocks I'd recommend buying right now for the long haul. The ones combining robust business models with dominant market positions -- and affordable valuations. I do have a handful of those.
Read on to see why I'm tempted to buy more of Duolingo (NASDAQ: DUOL), Netflix (NASDAQ: NFLX), and International Business Machines (NYSE: IBM).
Netflix at a discount? Yes, please.
Netflix is my biggest winner with a 6,794% return on the shares I picked up during the Qwikster panic of 2011.
The media-streaming pioneer basically owns the digital video industry it popularized. Trailing revenues are $48.8 billion, up 45% from fiscal year 2023. Over the same period, free cash flow rose 61% to $11.1 billion. I never really know what this innovator will do next, but I'm keeping a close eye on Netflix's video games and the fledgling Netflix House chain of real-world entertainment centers.
And I'm serious about the "undervalued" angle. Wall Street has been shunning this stock since the summer of 2025, when the first rumors of a Warner Bros. Discovery (NASDAQ: WBD) buyout surfaced. The rumors turned out to be true, and then Netflix backed down from an expensive bidding war. The stock is still down 32% over the last year, trading at a very reasonable 21.6 times forward earnings projections.
IBM's secret weapon is patience
IBM's stock has traded sideways over the last year and underperformed the S&P 500 (SNPINDEX: ^GSPC) since I bought my first shares in the spring of 2015.
But the 11-year gains nearly triple from 53% to 142% if you look at total returns instead. Big Blue is fully committed to its dividend policy, with a 2.9% annual yield more than doubling the S&P 500's 1.1% yield. Meanwhile, the company is a leader in quantum computing technology and a heavyweight in business-class AI tools.
Trading at just 17.8 times forward earnings and 16 times trailing free cash flow, IBM is an AI-powered cash machine hiding in plain sight.
Duolingo is teaching me Spanish and investing
I've owned Duolingo stock since shortly after the IPO in July 2021, but my daily streak of taking language lessons (or chess, more recently) goes back to June 2016. I've seen the service evolve from ho-hum rote repetition to deeply engaging mini games and chatbot-driven video calls.
Duolingo aims to "develop the best education in the world and make it universally available." That mission statement is repeated on the first page of every earnings report, filling the page. I find that enthusiasm as inspiring as the statement itself.
I want to own a small part of that vision, and the business is in great shape. The Q2 2026 report showed 58.7 million daily active users, $299 million in top-line revenue, and $78.6 million of free cash flow.
Yet Duolingo's stock is down 55% in 52 weeks and trades for 16.7 times free cash flow. That's a long-term bargain in my book.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, 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 Netflix 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 $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 212% 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 August 27, 2026.
Anders Bylund has positions in Duolingo, International Business Machines, and Netflix. The Motley Fool has positions in and recommends Duolingo, International Business Machines, Netflix, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Indicator	Mar 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
P/E	11.28	—	13.87	—	—	13.87	17.39
Price/Sales	4.38	4.93	5.39	—	—	5.39	0.66
P/B	3.32	3.81	4.08	—	4.86	4.86	1.68
P/FCF	11.80	13.77	—	—	—	13.77	12.74

Indicator	Mar 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
ROE	33.60	30.05	—	—	—	30.05	15.36
ROA	22.57	—	—	—	—	22.57	4.97
ROI	31.28	28.17	—	—	—	28.17	8.47
Net Worth	4.83	5.76	—	7.12	—	7.12	0.82
Quick Ratio	0.00	0.00	—	—	—	0.00	0.85
Current Ratio	2.62	2.72	—	—	—	2.72	1.38

Indicator	Mar 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
Net Profit Margin	38.40	35.81	—	—	—	35.81	5.79
Operating Margin	14.19	13.71	—	—	—	13.71	8.36
Gross Margin	72.70	72.75	—	—	—	72.75	39.57
Return on tangible equity	35.15	31.53	—	—	—	31.53	22.12

Duolingo, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue

Indicator	Mar 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
EPS	—	—	—	—	—	0.94	0.52
EPS Forecast	—	—	—	—	—	0.79	0.51
Revenue	292.00M	298.00M	—	—	—	298.00M	193.00M
Gross Profit	213.00M	217.00M	—	—	—	217.00M	—
EBITDA	48.00M	38.00M	—	—	—	38.00M	—