Duolingo downgraded to Hold at Truist amid ‘surprising changes’

As previously reported, Truist analyst Arvind Ramnani downgraded Duolingo (DUOL) to Hold from Buy with a price target of $100, down from $245. Bookings growth was significantly below expectations and the firm views the company’s shift towards user growth as “a long-term prove-it story” until investors can see reasonable proof points on the path to 100M DAUs by 2028, the analyst says. The firm expects shares to be capped near term given what it calls “material and surprising changes in strategy.”