Morgan Stanley lowered the firm’s price target on Duolingo (DUOL) to $480 from $515 and keeps an Overweight rating on the shares. Alternative data suggests Duolingo’s user trends recently weakened, with daily active user growth decelerating to 39% year-over-year in Q2 a from 51% rate seen in Q1 following social media pushback in the U.S. to the company’s “AI-First” memo, the analyst tells investors. Although weak Q2 user trends “may be a tactical negative,” the firm remains optimistic on the long-term story as it believes user pushback is likely to be temporary with some signs already pointing to normalization, the analyst added.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on DUOL:
- Duolingo’s Long-Term Growth Potential Justifies Buy Rating Despite Short-Term Challenges
- Apple to open App Store to competitors in EU
- Duolingo’s Strong Market Position and Growth Potential Justify Buy Rating
- Metals Company upgraded, CoreWeave initiated: Wall Street’s top analyst calls
- Duolingo price target lowered to $500 from $600 at DA Davidson