“Why I'm Not Buying Duolingo Stock (Yet)”
DUOL is held; current price lacks sufficient safety margin given high risk from new customer-acquisition strategy.
So, in light of the threat posed by artificial intelligence, the Duolingo management team chose its response. What is this response? Well, they focus on attracting customers even at the expense of profitability.
This means more free features to attract customers to the platform, even if it means less revenue generation from those same customers. So, what this means for investors is likely increased customer engagement and a rise in daily active users, which management is targeting at 100 million users over the next two years.