Duolingo (DUOL) CEO Luis von Ahn is pushing back against public criticism of the company’s “AI-first” strategy, clarifying that the move is not intended to result in mass layoffs for full-time employees. It must be noted that the company received backlash in April after an internal email from the CEO raised fears that AI would replace human workers. Following the news, DUOL stock soared 13% on Monday.
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In an interview with The New York Times, von Ahn took responsibility for the confusion. He said, “This was on me. I did not give enough context.”
Von Ahn explained that as a publicly traded company, people may assume the move is solely a cost-cutting measure aimed at reducing the human workforce. He clarified, “We’ve never laid off any full-time employees. We don’t plan to.”
Overall, he sees AI not as a replacement for humans but as a tool to help them achieve more. Importantly, the company holds weekly sessions for employees to experiment with AI tools to boost efficiency.
KeyBanc Analyst Shows Confidence in DUOL’s Future
Recently, KeyBanc analyst Justin Patterson upgraded Duolingo stock to Buy from Hold, with a price target of $460, reflecting confidence in the company’s prospects.
The analyst believes Duolingo has several growth opportunities ahead, including AI innovations that could enhance, rather than hurt, its ability to make money. Further, the company’s ongoing product updates, marketing efforts, and untapped potential in pricing strategies could lead to stronger growth and profitability over the next year.
Is Duolingo a Good Stock to Buy?
Turning to Wall Street, DUOL stock has a Moderate Buy consensus rating based on 13 Buys and five Holds assigned in the last three months. At $478.07, the average Duolingo stock price target implies a 29.49% upside potential.
