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Duolingo downgraded to Neutral at DA Davidson on decelerating user growth

As previously reported, DA Davidson analyst Wyatt Swanson downgraded Duolingo (DUOL) to Neutral from Buy with a price target of $300, down from $500. The firm’s proprietary data shows Duolingo’s active user growth continuing to decelerate and suggests that active users and subscribers are tracking below Q3 consensus estimates, the analyst tells investors. The firm also believes the recent departure of a key social employee may cause Duolingo to struggle improving brand sentiment, the analyst added.

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