Duolingo initiated with an Underweight at Wells Fargo

Wells Fargo initiated coverage of Duolingo (DUOL) with an Underweight rating and $239 price target While the shares are already down 16% year-to-date on user growth issues, artificial intelligence “backlash” has “transition to brand apathy,” the analyst tells investors in a research note. Wells believes Duolingo’s user growth issues will persist in the medium term, creating downside for the stock’s multiple. Wells believes the company’s fiscal 2027 estimates have downside risk.