Author argues Duolingo's ~80% drawdown reflects sector sentiment rather than business deterioration, and sees substantial upside if sentiment normalizes.
DUOL — LONG The author argues the entire bear case for Duolingo is that it is down ~80% from highs, which he says confuses a broken stock with a broken business, since the decline tracked the broader software selloff rather than company fundamentals. He contends the company is profitable with a strong balance sheet and improving economics, and that Duolingo is the default language-learning app worldwide with a sticky product, ubiquitous brand and low disruption risk. He frames this as a long-term bet on the product and economics rather than a short-term trade, with substantial upside if sentiment normalizes.
The market punished the stock, not the company. Those two things aren’t the same.