I’m not invested, but follow the company out of curiosity from time to time and was wondering what caused DUOL’s stock price to drop by -30% since last week. It seems that the market has been unsettled by a noticeable deceleration in both monthly active users (MAU) and daily active users (DAU).
Thoughts:
Duolingo (a language learning app) and Monday (a relatively sticky B2B work platform that helps teams manage their projects, tasks, and workflows) share a similar enterprise value ($7b to $8b), similar FCF margins, and - suprisingly - a similar valuation (forward EV/S ~9). Why?
Just a bump or a trend for DUOL? Could genAI potentially disrupt language learning, because people bother less about it? Something else?