JPMorgan analyst Bryan Smilek downgraded Duolingo (DUOL) to Neutral from Overweight with a price target of $95, down from $200. The firm cites the company’s shifting prioritization toward user growth in 2026 for the downgrade. This will drive lower bookings growth and adjusted EBITDA margin pressure, the analyst tells investors in a research note. JPMorgan says Duolingo is making investments across teaching efficacy, free user optimizations, organic traffic, and newer learning verticals. This will take time to translate toward user growth, it contends.
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