D.A. Davidson downgraded Duolingo to 'Neutral' from 'Buy' and significantly reduced its price target to $300 from $500. The downgrade was primarily attributed to concerns over decelerating active user growth, a key metric for the language-learning platform.
The analyst's revised outlook suggests a more cautious stance on Duolingo's ability to maintain its rapid user expansion. This assessment comes amidst increasing competition and evolving market dynamics in the digital education sector.
This substantial downgrade and price target cut signal a potential shift in investor sentiment regarding Duolingo's growth trajectory. The market is now closely scrutinizing the company's ability to sustain user engagement and overcome competitive pressures.
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