Bank of America reported early signs of slower user growth for Duolingo, Inc. as the company approaches its third-quarter earnings results. This observation suggests potential headwinds for a key metric that investors closely monitor for the language-learning platform.
The report indicates that Duolingo's implied Daily Active Users (DAU) growth, based on third-party data, is falling below expectations, projected at 27% year-on-year. This slowdown could impact investor sentiment regarding the company's growth trajectory.
Concerns about user momentum are compounded by analyst estimate reductions and increased reports of insider selling. These factors raise questions about future engagement levels and the sustainability of Duolingo's rapid expansion.
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