Duolingo price target lowered to $300 from $500 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Duolingo (DUOL) to $300 from $500 and keeps an Overweight rating on the shares. Despite showing “better than feared” Q3 and October DAU growth, the company has decided to trade lower monetization for faster user growth, which will pressure bookings and adds uncertainty to the FY26 growth algorithm, the analyst tells investors. However, the firm believes user growth can stabilize with U.S. green shoots, intact long-term drivers, and the incremental prioritization, the analyst added.