Duolingo Shares Drop After AI-Powered Growth Strategy Cuts Forecasts
Duolingo’s shares fell over 23% following a forecast of lower-than-expected bookings for 2026, as the company shifts focus from immediate monetization to expanding its user base through wider access to its AI-powered learning tools. This strategic pivot is expected to slow bookings growth and reduce profitability in the short term. The company will make AI-driven features more broadly available, aiming for long-term user growth.