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Google Translate Gemini beta not a major risk to Duolingo, says Raymond James

Raymond James reiterated a Market Perform rating on Duolingo (DUOL) after Google Translate (GOOGL) rolled out a beta of new language learning features powered by the company’s Gemini model. While the firm could see the largest threat coming from Google providing generative AI features for free to users, the company’s willingness to eat the AI costs, and Google Translate coming as a default app on many devices, Raymond James believes Duolingo and its Max tier retain advantages driven by a much deeper expertise in gamified language learning across a wider range of languages. Ultimately, while these headlines are unlikely to subside, the firm does not see them as significant medium term risks to disrupting Duolingo’s product advantage, the analyst tells investors in a research note.

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