JPMorgan analyst Bryan Smilek lowered his price target for Duolingo from $580 to $500, while maintaining an 'Overweight' rating. The adjustment was made due to concerns about slowing growth in daily active users (DAUs) and potential subscription churn.
The analyst's revised outlook comes as Duolingo approaches its second-quarter earnings report, with market observers closely monitoring user engagement trends. Slowing DAU growth could indicate challenges in maintaining the company's rapid expansion trajectory.
This price target reduction reflects a more cautious stance on Duolingo's near-term growth prospects, despite the company's strong market position. Investors will be watching for further details on user metrics and retention strategies in upcoming reports.
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